The global demand for oil and gas is reviving from its pandemic low owing to the gradual reopening of major economies. Because oil prices are expected to peak in July, we believe energy stocks China Petroleum (NYSE:SNP) & Chemical Corporation (SNP), Continental Resources (NYSE:CLR), and World Fuel Services (NYSE:INT) will benefit significantly. Read on.The energy industry is recovering this year from the damage caused by the COVID-19 pandemic as the gradual reopening of economies worldwide drives rising demand for crude oil. Given rising demand, OPEC and its allies have decided to curb their production cuts from this month. Though oil prices are currently depressed owing to lower demand from India and Japan, S&P Platts expects oil demand and prices to peak in July.
The global oil & gas upstream activities market is expected to grow at a 26.6% CAGR to reach $3.34 trillion this year. Growing investor interest in the industry is evident in SPDR S&P Oil & Gas Exploration & Production ETF’s (XOP) 75.9% returns over the past six months compared to S&P 500 Trust ETF’s (SPY) 18.1% gains.
Based on these factors, we think China Petroleum & Chemical Corporation (SNP), Continental Resources, Inc. (CLR), and World Fuel Services Corp. (INT) are ideal investment bets now. Here’s why: