© Reuters. 2 Energy Stocks Positioned to Perform Well During the Second Half of 2021
Energy stocks have attracted significant investor attention this year thanks to a dramatic increase in oil prices. And because the global resumption of economic activities is expected to continue driving the demand for oil in the coming quarters, energy stocks should continue rallying even if the major oil producing countries discontinue their supply cuts. So, we believe energy stocks ARC resources (AETUF) and CONSOL Energy (NYSE:) are well positioned to deliver solid returns in the second half of the year.After suffering a serious setback last year, energy stocks have witnessed a solid rally this year thanks to a rebound in oil prices. Rising demand from reopening economic activities and prolonged supply cuts by the major oil producing countries have driven a dramatic increase in oil prices this year.
After Energy Information Administration data revealed a substantial decline in crude and gasoline inventories, oil prices rose last week, rebounding from early losses. Along with rising demand from reopening economies, disagreements among members of the Organization of Petroleum Exporting Countries (OPEC), Russia, and other producers over supply strategy might keep driving oil prices higher in the coming months. According to EIA’s latest short-term energy outlook, global oil consumption is expected to increase by 6% from 2020 levels in 2021 and by an additional 4% in 2022. This should bode well for energy companies.
Given this backdrop, we think energy stocks ARC Resources Ltd. (AETUF) and CONSOL Energy Inc (NYSE:). (CEIX) could be solid bets now because they are poised to cash in on the overall energy sector’s growth.
Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.