Amid rising demand for oil, OPEC+ has agreed to phase out its production cuts. Given this backdrop, popular oil & gas companies Marathon Oil (MRO) and Apache (APA) should witness substantial growth. But which of these stocks is a better buy now? Read more to find out.Marathon Oil Corporation (NYSE:MRO) in Houston, Tex., is an independent exploration and production company in the United States and Equatorial Guinea. The company explores for, produces, and markets crude oil and condensate, natural gas liquids, and natural gas and its products. In comparison, Apache Corporation (NASDAQ:APA), which is also headquartered in Houston, explores for and produces oil and gas. The company operates through its subsidiaries: Apache Corporation and APA Corporation Suriname.
As the countries phase out pandemic-driven restrictions, demand for crude oil is rising quickly, causing oil prices to climb to multi-year highs. OPEC+ countries recently agreed to increase oil production and supply by 2 million bpd or 0.4 million bpd per month from August through December 2021. The cartel aims to phase out production cuts entirely by around September 2022. Thus, MRO and APA should benefit from the industry tailwinds.
MRO has gained 33% over the past six months, while APA has returned 4% over the period. Also, MRO’s 77.2% gains year-to-date compare with APA’s 26.2% returns. MRO is the clear winner with 105.9% gains versus APA’s 15.3% in terms of past year’s performance.