Energy was the second-best performing industry in the S&P 500 last month, thanks to surging crude oil prices. And since the industry’s prospects look bright with rising demand from recovering economies, we think it could be wise to bet now on fundamentally sound international energy stocks PJSC Lukoil (LUKOY (OTC:LUKOY)), Vermilion Energy (NYSE:VET), GeoPark (NYSE:GPRK), and Transportadora de Gas del Sur S.A. (TGS). Read on.Last year, energy-intensive industries were forced to come to a near halt to contain the spread of COVID-19 and comply with the social distancing guidelines. But with solid progress on the vaccination front and the easing of social distancing norms, most of these industries are reopening this year, significantly increasing the demand for energy.
While the demand is rising, major oil-producing countries’ curbed supply has driven crude oil prices to new highs. And since the demand for energy is expected to continue inching up, energy companies should thrive. Strong investor interest in the industry is evident in the 89.1% and 103.5% respective returns of iShares Global Energy ETF (IXC) and Energy Select Sector SPDR ETF (NYSE:XLE) over the past year.
So, we think International energy stocks PJSC Lukoil (LUKOY), Vermilion Energy Inc. (VET), GeoPark Limited (GPRK), and Transportadora de Gas del Sur S.A. (TGS) could be solid bets to cash in on the industry tailwinds.