Due to increasing geopolitical uncertainties and extended oil production cuts by OPEC+ members, oil demand is surging rapidly while supply remains limited, resulting in higher prices. Given the industry tailwinds, it could be wise to invest in fundamentally sound energy stocks, such as Cenovus Energy Inc. (CVE), DNOW Inc. (DNOW), and MRC Global Inc. (MRC), with high price targets.
OPEC+ enforced output cuts since late 2022 to stabilize the market. The group agreed to extend the current 2.2 million bpd cut until the end of September, with plans to gradually phase it out starting in October. Additionally, during the second half of this year, oil demand is expected to grow by an average of 2.3 million b/d.
