The gradual global economic recovery and anticipated relatively moderate effects of the COVID-19 omicron variant could increase the demand for oil in 2022. According to Goldman Sachs’ (GS), oil prices could hit $100. Against this backdrop, we think it could be wise to scoop up the shares of fundamentally sound oil-related stocks Suncor Energy (NYSE:SU), Occidental Petroleum (OXY), Marathon Oil (MRO), and APA Corporation (APA). Let’s discuss.The major stock market indexes climbed for the second day in succession yesterday after President Biden reassured the nation that his government has no plans to return to March 2020 style pandemic-driven lockdowns. Investment bank Goldman Sachs Group Inc. (NYSE:GS) believes that oil demand will reach a new high in 2022 and again in 2023. GS’ head of energy research, Damien Courvalin, believes that oil prices can soar to $100 per barrel.
Because demand for oil and gas continues to outstrip supply, Brent crude and U.S. crude prices have climbed above $80 per barrel. And although the omicron variant has been a spoilsport, international travel is expected to pick up gradually because several economies boast increased vaccination levels. According to Art Hogan, chief market strategist at National Securities, “The omicron’s potential damage to economic activity will be reasonably short and shallow.”
Given this backdrop, we think it could be wise to bet on quality oil-related stocks as Suncor Energy Inc. (SU), Occidental Petroleum Corporation (NYSE:OXY), Marathon Oil Corporation (NYSE:MRO), and APA Corporation (APA).