OPEC+’s announcement regarding the easing of supply restrictions beginning in August has caused a slump in oil prices since yesterday. However, given strong demand and declining inventories, analysts expect oil prices to rebound soon. Thus, we think investors should scoop up the stocks of EOG Resources (NYSE:EOG), Energy Transfer (NYSE:ET), Continental Resources (NYSE:CLR), and Apache (APA) on the price dip to benefit from a potential oil-price rebound soon.After a prolonged disagreement among OPEC+ members regarding oil supply restrictions, Saudi Arabia and the United Arab Emirates reached an accord over the weekend to boost production by 400,000 barrels per day beginning in August. Following news of the agreement, the front-month West Texas Intermediate and Brent crude contracts witnessed their largest single-session percentage decline since March. Oil prices are currently hovering near $70 per barrel.
However, the baseline restrictions on oil production are expected to be lifted in May next year, as announced by OPEC+. Oanda senior market analyst Edward Moya said, “WTI crude’s fundamentals still support another massive move higher.”
Thus, oil prices are poised to make a strong rebound as demand rises in tandem with the economic recovery in developing regions. Thus, investors could capitalize on the dip in prominent oil stocks EOG Resources, Inc. (EOG), Energy Transfer LP (ET), Continental Resources, Inc. (CLR), and Apache Corporation (NASDAQ:APA), whose stock prices are expected to soar in the near term.