The fast-paced vaccination program and economic growth are expected to buoy the oil & gas market with rising demand. Therefore, well-established players in this space, Exxon Mobil (XOM) and BP p.l.c. (NYSE:BP), should benefit from the industry tailwinds. But which of these stocks is a better buy to take advantage of the dip in their share prices now? Keep reading to find out.Exxon Mobil Corporation (NYSE:XOM) in Irving, Tex., explores and produces crude oil and natural gas in the United States and internationally. It operates through Upstream; Downstream; and Chemical segments. In comparison, London-based BP p.l.c. ADR (BP) is in the energy business worldwide. It operates through Gas & Low Carbon Energy; Oil Production & Operations; Customers & Products; and Rosneft segments.
U.S. gasoline consumption averaged 8.6 million b/d in the first half of 2021, up from 8.3 million b/d in the second half of 2020, driven by a solid economic recovery and increasing societal mobility. Despite the resurgence of the COVID-19 cases, EIA forecasts U.S. gasoline consumption will average 8.8 million b/d in 2021, up from 8.0 million b/d in 2020. The organization expects this trend to continue next year. Thus, major players in the oil & gas industry, BP and XOM, are expected to benefit.
BP shares have declined 3.8% in price over the past six months, while XOM has declined 0.5%. Also, BP’s 6.3% decline over the past three months compares with XOM’s 4.8% slump. However, in terms of past year’s performance, XOM has gained 35.7% while BP gained 13.9%.