OPEC+’s expectation of unprecedented oil demand should boost output in the coming months. Also, the benchmark Brent crude is currently trading above $72 per barrel, near its multi-year highs. Therefore, we think oil-producing companies Camber (CEI) and Cimarex (XEC) will likely benefit. But which of these stocks is a better buy now? Read more to find out.Camber Energy, Inc. (CEI) in Houston, Tex., is an independent oil and natural gas company that acquires, develops, and sells crude oil, natural gas, and natural gas liquids. In comparison, Cimarex Energy Co. (NYSE:XEC) in Denver, Colo., also operates as an independent oil and gas exploration and production company, primarily in Texas, Oklahoma, and New Mexico.
Despite the COVID-19 Delta variant concerns, OPEC+ expects global oil demand to witness a stable rise in the second half of 2021 and beyond. OPEC+ estimates global oil demand will grow by 5.95 million bpd in 2021. Also, the organization has revised its 2022 oil demand forecast to 4.2 million barrels per day (bpd) up from its previous forecast of 3.28 million bpd. Furthermore, the benchmark Brent crude is trading close to its multi-year highs on expectations of a rise in oil demand as the vaccine roll-out progresses and global economic vitality returns. The anticipated stable demand should allow oil & gas stocks CEI and XEC to generate substantial revenues in the coming quarters.
CEI has gained 36.3% in price over the past six months, while XEC has returned 22.8% over this period. However, XEC’s 107.3% gains year-to-date compare with CEI’s 83% returns. In terms of the past year’s performance, CEI is the clear winner with 232.8% gains versus XEC’s 196%.