Oil prices have been soaring this year as the global economy reopened. The rise in oil has driven energy stock prices up as well. The current dip in prices and a strong outlook presents a great buying opportunity to pick up shares of Canadian Natural Resources (NYSE:CNQ) and EOG Resources (NYSE:EOG).Crude oil prices have risen sharply this year as demand increased significantly once global economies reopened. The United States Oil Fund (NYSE:USO), which tracks Light Sweet Crude Oil, is up 48% in 2021. The rise in oil prices helped drive prices of energy stocks up, with the SPDR Select Energy ETF (NYSE:XLE) gaining over 41% year to date.
On Monday this week, an OPEC meeting was called off as countries couldn't agree on an increase in output for July. I see this as bullish for oil prices and energy stock prices. As another meeting won't occur until later this year, this rebound in oil and energy has more room to run.
Though prices are down this week, after the ISM services survey came in weaker than expected, I see this as a temporary blip and a great time to buy energy stocks on the dip. The outlook for oil consumption isn't changing. The EIA predicts global oil consumption will top 100 million barrels per day later in the year. This is why I think investors should consider Canadian Natural Resources Limited (CNQ) and EOG Resources, Inc. (EOG), two energy stocks that rank highly in our POWR Ratings system.