Oil prices have endured wild swings since Russia invaded Ukraine. Although oil and gas prices retreated from their peaks in recent months due to macroeconomic uncertainties caused by inflation and high-interest rates, the energy sector is expected to stay afloat due to strong demand for oil and gas.
Below I have discussed some of the quality energy stocks, including North American Construction Group Ltd. (NOA – Get Rating), Ranger Energy Services, Inc. (RNGR – Get Rating), and Graham Corporation (GHM – Get Rating), that possess enormous growth potential.
The International Energy Agency (IEA) revised its forecast for this year’s world oil demand growth by 2.2 mb/d, with China’s stronger-than-expected rebound. China’s demand recovery continues to surpass expectations, setting an all-time record in March at 16 mb/d.
According to the Organization of the Petroleum Exporting Countries (OPEC) monthly report, global oil demand will rise by 2.35 million bpd, or 2.4% this year. It expects Chinese oil demand to grow by 840,000 bpd in 2023, up from last month’s forecast of 800,000 bpd, adding to a recovery after strict COVID-19 containment measures were scrapped.
On top of it, OPEC+ has reached an agreement to extend output cuts into next year after announcing a surprise oil production cut in April, which could elevate oil prices in the near term. In addition, the global energy as a service market is expected to expand at a CAGR of 15.1% to reach $212.60 billion by 2028.
The energy sector has immense potential to grow and expand in the coming years. Additionally, the sector’s resilience is evident from the Energy Select Sector SPDR Fund’s (XLE) 9.4% gains over the past month. With that in mind…
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