On this date two years ago, West Texas Intermediate (WTI) crude oil traded at right around $40 a barrel, and Brent crude traded at around $41 a barrel. WTI crude traded at $83.40 a barrel Thursday morning, while Brent was at $90.25. Both are down by about a third from their peak levels in early March.
According to the U.S. Energy Information Administration’s short-term outlook dated September 7, the average price for a barrel of WTI in 2022 will be $98.07, falling to $90.91 a barrel in 2023. Brent crude will average about $6 a barrel more in both years.
For oil and gas producers, this cyclical upswing has generated bigger profits and shareholders have been among the primary beneficiaries as the companies raise dividends and increase share buybacks.
While volatility in the energy markets is likely to continue, analyst Neil Mehta and his team at Goldman Sachs issued a new report Wednesday naming 10 small-cap and mid-cap oil and gas stocks that are “attractive relative and absolute opportunities” ideas for investors. All 10 are rated Buy.
This post appeared first at 24/7 Wall St.