Even though OPEC+ recently reached an agreement to increase production, soaring demand for crude oil from the reopening global economy should keep the energy market strong. As such, oil & gas companies VAALCO Energy (EGY) and Camber Energy (CEI) should benefit from a favorable industry backdrop. But which of these stocks is a better buy now? Read more to find out.VAALCO Energy, Inc. (EGY) in Houston, Tex., is an independent energy company that acquires, explores for, develops, and produces crude oil and natural gas. It holds an Etame production sharing contract related to the Etame Marin block located offshore in the Republic of Gabon in West Africa. Camber Energy, Inc. (CEI), which is also based in Houston, is an oil and natural gas company that acquires, develops, and sells crude oil, natural gas, and natural gas liquids in the Cline shale and upper Wolfberry shale in Glasscock County, Texas.
Oil prices fell sharply following OPEC and its allies’ agreement on July 18 to increase production by 400,000 barrels each month beginning in August. Rising COVID-19 cases due to the spread of the hyper-contagious Delta variant also contributed to the decline in oil prices. However, the slump in oil prices should be considered a buying opportunity, according to Andy Lipow, the president of Lipow Oil Associates. The world is still largely dependent on plentiful supplies of fuel, such as oil and gas. So, both EGY and CEI could benefit from the steady demand.
EGY has gained 33.3% year-to-date, while CEI lost 48.2%. Also, EGY’s 105.2% gain over the past year is significantly higher than CEI’s 47.5% loss. Furthermore, in terms of their past nine months’ performance, EGY is the clear winner with 144.4% gains versus CEI’s 41.4% loss.