The U.S. Energy Information Administration (EIA) expects oil prices to remain stable through year’s end, backed by increasing demand as economic activities continue to rise. Therefore, we think oil-producing companies Exxon Mobil (XOM) and ConocoPhillips (NYSE:COP) should continue benefiting. But which of these stocks is a better buy now? Keep reading to find out.Exxon Mobil Corporation (NYSE:XOM) in Irving, Tex., explores and produces crude oil and natural gas in the United States and internationally. It operates through Upstream, Downstream, and Chemical segments. ConocoPhillips (COP), in comparison, produces, transports, and markets crude oil, bitumen, natural gas, liquefied natural gas (LNG), and natural gas liquids worldwide. COP is based in Houston, Tex.
Despite the rapid spread of the COVID-19 Delta variant that is threatening the global economic recovery, the EIA expects the global consumption of petroleum and liquid fuels to average 97.60 million b/d for all of 2021. This reflects a 5.30 million b/d increase from 2020. The EIA also expects Brent prices to remain near current levels for the remainder of 2021, averaging $72/b from August through November. Thus, the stable demand conditions should allow XOM and COP to maintain their financial strength in the coming months.
COP has gained 12.3% in price over the past six months, while XOM has returned 4.6%. Also, COP’s 33.9% gains year-to-date compare with XOM’s 32% returns. In terms of nine-month’s performance, XOM is the clear winner with 46.2% gains versus COP’s 36.6%.