The fast-paced global economic recovery pushed oil prices to three-year highs today. And this upward price trend is likely to continue in the coming months even with increasing production by OPEC+ members. Thus, we believe oil extraction stocks Whiting Petroleum (NYSE:WLL) and SandRidge Energy (SD) should be attractive investment bets now. Read on.Oil prices surged to three-year highs above $75/barrel today on strengthening market demand and a bullish outlook. OPEC+ producers are reported to be upbeat regarding current and future market conditions, and the cartel is expected to raise total oil production by 500,000 barrels per day in August.
The rising demand for crude oil in the United States has caused oil inventories to decline over the past six weeks as the country’s recovering industrial and manufacturing activities build up steam.
The global oil and gas industry is expected to grow at a 25.5% rate year-over-year to $5.87 trillion in 2021. Given this backdrop, we think shares of oil extraction companies Whiting Petroleum Corporation (WLL) and SandRidge Energy, Inc. (SD) could generate significant returns in the near term.