5 Standout Energy Stocks Worth Buying as Oil Prices Surge to 2023 High
Energy stocks have been on a tear in recent weeks, with the latest boost coming from surging crude oil prices, which recently rose to their highest level of 2023 to around $87 per barrel.
In fact, U.S. crude has risen roughly 31% since June amid worries over tighter global inventories following fresh output cuts from Saudi Arabia and Russia.
The ongoing rally has sparked renewed bets that crude prices could once again reach the key psychological $100 per barrel mark — a level not seen since before the crash of late 2014.
As could be expected, the Energy Select Sector SPDR® Fund (NYSE:XLE) — which tracks a market-cap-weighted index of U.S. energy companies in the S&P 500 — is up 19% in the last three months to reach its highest level since January.
In comparison, the S&P 500 is up roughly 7% over the same timeframe.
With oil prices set to test new highs, here are five energy stocks well-positioned to extend their march higher through the end of the year due to their solid fundamentals, reasonable valuations, and high shareholder returns.
Marathon Petroleum (NYSE:MPC), a heavyweight in the oil and gas industry, boasts a strong presence in the refining and marketing sector. The Findlay, Ohio-based company, operates an extensive network of refineries, making it a key player in the downstream sector.
Marathon's ongoing focus on operational efficiency and strategic planning has allowed it to weather the ups and downs of the energy market.
In a sign of how well its business has performed amid the current environment, Marathon Petroleum delivered second-quarter profit and revenue blew past consensus expectations thanks to strong global refinery demand.
The company has now beaten Wall Street’s top-and-bottom line estimates for
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