The oil and gas industry is experiencing strong growth amid elevated prices and strong demand. Given the industry’s bright prospects, investors could consider buying fundamentally sound oil and gas stocks APA Corporation (APA), Obsidian Energy Ltd. (OBE), and VAALCO Energy, Inc. (EGY), which are currently trading at a discount.
Global oil demand increased by 870 kb/d in the second quarter of 2024, and the demand is projected to rise by less than 1 mb/d in both 2024 and 2025. Also, world supply rose 230 kb/d to 103.4 mb/d in July as the substantial OPEC+ increase offset losses from non-OPEC+. The Brent crude oil spot price totaled $85 per barrel in July, up $3/b from the average in June.
