While voluntary production cuts may not continue for much longer, rising demand for crude oil from reopening economies globally is expected to support oil prices at around their current level in the coming months. This, along with oil and gas companies’ progress in their sustainable energy research and production goals, should continue to support their performance. Consequently, we think well-known oil and gas companies EOG Resources (NYSE:EOG) and Occidental Petroleum Corporation (NYSE:OXY) are well-positioned to deliver solid returns in the near term. But let’s find out which of these stocks is a better buy now. Read on.EOG Resources, Inc. (EOG) explores, develops, produces, and markets crude oil, natural gas and natural gas liquids worldwide. Its operations are focused on the productive basins in the United States, with a focus on crude oil and, to a lesser extent, on liquids-rich natural gas. It has operations offshore Trinidad, in the United Kingdom East Irish Sea, in China’s Sichuan Basin and in Canada.
Occidental Petroleum Corporation (OXY) is an international oil and gas exploration and production company that has operations in the United States, the Middle East and Latin America. The company's Oil and Gas segment explores, develops and produces oil and condensate natural gas liquids and natural gas.
After hitting historic lows in April 2020, the oil and gas industry has recovered significantly, primarily on the back of voluntary production cuts by OPEC+ countries. While the alliance has decided to gradually curb production cuts beginning this month, rising demand for crude oil on the reopening of the economies worldwide should keep oil prices at around their current levels in the coming months.