Which Energy Stock is a Better Choice? By StockNews
Oil prices should continue rising because OPEC, its allies and the United States intend to follow their agreement not to boost oil output too quickly amid increased demand. Producers are also limiting new drilling in order to maintain tight supplies. This backdrop should make energy stocks APA Corporation, (APA), and Occidental Petroleum (OXY), more attractive. What stock do you think is the best buy? Learn more. APA Corporation, Houston Tex. explores and produces oil-and gas properties. There are operations in the United States and Egypt. It also has offshore Suriname exploration. Occidental Petroleum Corporation (NYSE) is a similar company based in Houston. It acquires, investigates and develops oil-and gas properties throughout the United States, Middle East, Africa and Latin America. Three segments make up the company: Oil and Gas; Chemical and Marketing; and Midstream.
Due to energy shortage fears, the price of has risen by over 60% in this year. Despite multi-year highs, OPEC remains firm in its determination to increase its supply slowly rather than increasing its output to meet rebounding demand. Moreover, U.S. shale oil production is expected to grow at a “modest rate” over the next 18 months. Further fuelling the rise in oil prices is record high gas prices. This price momentum is good news for oil-producing companies APA, OXY.
APA’s shares have gained 41.5% in price over the past six months, while OXY has gained 35.8%. However, OXY’s 92.9% gains year-to-date compare with APA’s 72.1% returns. In terms of the past year’s performance, OXY is the clear winner with 208.6% price gains versus APA’s 152.5%.
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