Faced with excess supply that is likely to carry over into the new year, crude oil prices are likely to continue to struggle in 2026. The U.S. Energy Information Administration (EIA) expects the supply glut to persist through 2026, which should, in turn, put downward pressure on oil prices—crude oil could fall to $55 per barrel on average for the first quarter.
This is likely to be bad news for stocks in the oil and gas industry in the short term, given the close correlation between their performance and the price of these resources. Investors willing to take a longer view, however, might see an opportunity at some point in the coming quarters to load up on shares of lesser-known energy sector names that present a value play. Of course, there is risk to this strategy—it's always challenging to time the market, and there is no telling whether other factors may continue to depress the price of crude for a longer period, for instance. However, the companies below may interest investors with an appetite for risk and time to wait for energy prices to recover.
