The price of U.S. crude recently hit its seven-year high, spurred by high natural gas prices and an oil supply crunch. Furthermore, OPEC has no intention of meeting the growing demand with increased supply. Given this backdrop, we think it could be wise to invest in mid-cap energy stocks APA Corporation (APA), California Resources (NYSE:CRC), Whiting Petroleum (NYSE:WLL), and Oasis Petroleum (NASDAQ:OAS). They each still look undervalued at their current price levels. Read on.The price of U.S. crude recently rallied to seven-year highs, fueled by the restrained supply from oil-producing countries amid rebounding demand. Oil prices have risen more than 16% since the start of September. Furthermore, high natural gas prices are adding to the oil price spike.
Also driving the rally is OPEC+’s decision to stick to its earlier agreement to increase the worldwide supply by a limited amount, ignoring the heightened demand. The White House has called for more support from oil-producing countries to address the price spike.
The thriving oil industry has attracted immense investor attention, causing several energy stocks to become overvalued. However, we think fundamentally sound mid-cap energy stocks APA Corporation (APA), California Resources Corporation (CRC), Whiting Petroleum Corporation (WLL), and Oasis Petroleum Inc. (OAS) still look undervalued at their current price levels. Thus, these stocks could be solid bets now.