The oil & gas industry witnessed solid growth in the first half of this year, driven by significant demand amid supply cuts. The continuation of the oil-price rally should buoy the industry through year’s end. Therefore, Wall Street analysts predict oil & gas stocks, EOG Resources (NYSE:EOG), Hess (HES), Cenovus (CVE), and Diamondback (NASDAQ:FANG) will rally by more than 45% in price. So, let’s take a closer look at these companies.The resurgence of the COVID-19 cases put pressure on the oil & gas industry for several weeks, as investors anticipated a potential decline in demand due to anticipated, renewed travel restrictions. However, the recent trend indicates that the price rally witnessed in the first six months of 2021 is not yet over.
Oil prices rose significantly last week, fueled by concerns over U.S. supplies following damage from Hurricane Ida and expectations of higher demand. Furthermore, natural gas prices have risen 99% year-to-date, bolstered by supply concerns and rising demand. Analysts expect natural gas prices to continue to rise. In addition, gas prices could double if there is an especially cold winter.
Amid these encouraging market trends, Wall Street analysts expect oil & gas stocks EOG Resources, Inc. (EOG), Hess Corporation (NYSE:HES), Cenovus Energy Inc . (NYSE:CVE), and Diamondback Energy, Inc. (FANG) to rally by more than 45% in price.