Inflation and strong demand for crude oil from the reopening global economy and controlled supply should keep the oil prices elevated. Natural gas prices are also expected to keep rallying on strong demand. Therefore, prominent players in this space, such as ConocoPhillips (NYSE:COP) and Chevron Corporation (NYSE:CVX), should benefit. But which of these stocks is a better buy now? Read more to find out.Amid tight supply and soaring demand, gas prices have surged to a seven-year high of $3.40 a gallon. Low investment in new drilling and supply chain problems are also contributing to the rise in gas prices. Moreover, Bank of America (NYSE:BAC) said Brent crude could reach as much as $120 per barrel by the middle of next year. Saudi Arabia’s state oil producer Aramco (SE:2222) also raised the December official selling price for its flagship Arab Light for Asia by $1.40 per barrel from November levels signaling prices to increase. The world is still largely dependent on plentiful supplies of fuel such as oil and gas. So, both Chevron Corporation (CVX) and ConocoPhillips (COP) could benefit from the steady demand.
CVX engages in integrated energy, chemicals, and petroleum operations worldwide. The company operates in two segments, Upstream and Downstream. It is also involved in cash management and debt financing activities, insurance operations, real estate activities, and technology businesses.
COP explores, produces, transports, and markets crude oil, bitumen, natural gas, liquefied natural gas, and natural gas liquids worldwide. The company primarily engages in conventional and tight oil reservoirs, shale gas, heavy oil, LNG, oil sands, and other production operations.