Oil and gas companies have gained significantly this year due to high demand and rising prices. After a brief dip, oil prices have rebounded sharply as concerns about the COVID-19 omicron variant have eased. Wall Street analysts expect oil & gas stocks Crescent Point (CPG) and TransGlobe (TGA), which are currently trading at less than $10, to rally by more than 25% in the near term. So, read on for details on these names.The United States Energy Information Administration (EIA) estimated in its short-term energy outlook report that 98.90 million b/d of petroleum and petroleum and liquid fuels were consumed internationally in October, which is about 4.50 million b/d greater than October 2020. Furthermore, EIA predicts that global consumption of petroleum and liquid fuels will increase by 3.30 million b/d in 2022.
For the first nine months of this year, the 24 most significant oil and gas companies posted a combined profit of $174 billion. They also registered a $74 billion profit in the third quarter alone, due to skyrocketing gasoline prices. Following a short dip, oil prices rebounded by $2 on December 7, with Brent Crude futures climbing 2.7% to $75.05 per barrel, and West Texas Intermediate up 3.2% to $71.74 per barrel, on easing omicron concerns and the stalling of Iran’s nuclear talks.
Given this backdrop, we think it might be reasonable to bet on cheap oil and gas stocks Crescent Point Energy Corp. (NYSE:CPG) and TransGlobe Energy Corporation (TGA), which Wall Street analysts predict will rally by more than 25% in the near term.