Oil and gas prices have been rallying on strong demand as the global economy recovers. In addition, the passage of an infrastructure bill in the U.S. is expected to boost oil demand further. And because OPEC and its allies are reluctant to change their stance on limiting the supply of oil, oil prices should keep rallying. Given this backdrop, we think the low-priced stocks of oil & gas concerns Tellurian (NYSE:TELL) and Kosmos (KOS) could be ideal additions to one’s portfolio now, considering these companies’ fundamental strength. Read on.Oil and gas prices are soaring on the back of robust demand with the reopening of the economy. According to the latest Energy Information Administration (EIA) report, global oil demand has almost reclaimed pre-pandemic levels. West Texas Intermediate (WTI) is trading near its highest level since 2014. Oil prices were trading at a two-week high on November 9, with Brent crude rising 1.6% to settle at $84.78 per barrel and WTI crude climbing 2.7% to $84.15. The the bipartisan infrastructure spending bill passed by Congress this week is expected to boost economic growth and the oil demand further.
OPEC and its allies are reluctant to ramp up the oil supply. After much insistence from the U.S. government, the cartel agreed to a 400,000 barrel-a-day production hike for December, which is insufficient to meet the demand. Therefore, oil prices could keep ascending.
Given the rising prices, we think the shares of Tellurian Inc. (TELL) and Kosmos Energy Ltd . (NYSE:KOS), which are currently trading at less than $10, could be solid additions to one’s portfolio.