Oil prices have jolted higher this month, with May-dated crude futures (CLK24) up 4.4% since the beginning of March. This rally has largely been fueled by the International Energy Agency's (IEA) latest report, where the agency raised its forecast for global crude oil demand growth in 2024 by 110,000 barrels per day to 1.3 million barrels per day. The IEA cited a stronger U.S. economic outlook, along with increased fuel needed for ships to take longer routes to avoid Houthi attacks in the Red Sea, as the key drivers behind its upward revision.
Against this backdrop of rising oil prices and the IEA's bullish demand forecast, two dividend aristocrats within the energy sector have emerged as compelling investment opportunities. These S&P 500 Index ($SPX) companies, which have consistently increased their dividends for over 25 consecutive years, have earned consensus “buy” ratings from analysts, with mean price targets suggesting healthy upside potential from current levels. As the energy sector gears up for more favorable supply dynamics, these two energy dividend aristocrats are worth a look.
