The progressive increase in global oil and gas demand, in conjunction with tighter supplies, could maintain a lofty price level in the near term. Given the industry tailwinds, investors could consider adding fundamentally strong energy stocks, TotalEnergies SE (TTE), Marathon Petroleum Corporation (MPC), and Valero Energy Corporation (VLO), currently beating Exxon Mobil Corporation (XOM), to their portfolios.
Despite the macroeconomic and geopolitical pressures, the energy sector remained resilient. Global oil demand achieved a milestone in June 2023, and it continued to climb, with a 0.2 MMb/d month-over-month increase registered in August, reaching 101.4 MMb/d.
According to the IEA Oil Market Report (OMR), this demand is predicted to rise by 2.2 mb/d year-over-year, touching 102.2 mb/d this year. China, the world’s largest oil importer, is in line to see its oil demand peak within the next three to five years, as predicted by research firm Wood Mackenzie and China’s state oil majors.
Potential market influences arise from Russia and Saudi Arabia’s extended oil production cuts, pushing prices up. In response to this…
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