Despite the global quest for cleaner energy sources, the oil and gas industry is thriving, fueled by unprecedented demand. Oil prices rose in their last trading session to hover around $70-plus, while analysts expect them to hit $100 by 2023. We think the bullish market trends could be to the benefit of lesser-known stocks San Juan Basin Royalty (SJT), VOC Energy (VOC), PHX Minerals (PHX), and Barnwell (BRN). These stocks are currently trading under $10. Let’s discuss.The global drive for cleaner technology accelerated in the runup to the COP26 summit this year, but efforts may fall short. The oil and gas industry is here for a while yet because renewables are still expensive. The United States Energy Information Administration reported that Brent crude prices averaged $81 per barrel for November, indicating a $38 per barrel increase from November 2020. Furthermore, the organization also estimated that 99.7 million b/d of petroleum and liquid fuels was consumed globally in the last month, a 4.9 million b/d increase from the same month last year.
On Tuesday, December 20, oil prices rebounded after a decline in the previous session. Brent crude rose 3.4%, to $73.98 per barrel, while the West Texas Intermediate (WTI) gained 3.7%, to settle at $71.12 per barrel. In addition, analysts at investment bank Goldman Sachs Group (NYSE:GS), expect oil prices to hit $100 per barrel in 2023 as growth in demand outperforms supply.
We think the upbeat market sentiment could also benefit comparatively lesser-known oil and gas stocks of San Juan Basin Royalty Trust (SJT), VOC Energy Trust (VOC), PHX Minerals Inc. (PHX), and Barnwell Industries, Inc. (BRN), given their growth potential. These stocks are currently trading at less than $10.