2 Energy Stocks to Buy, 2 to Avoid By StockNews – Investing.com

2 Energy Stocks to Buy, 2 to Avoid By StockNews – Investing.com

© Reuters. 2 Energy Stocks to Buy, 2 to Avoid

The global economic recovery from COVID-19-driven damages is supporting a steady recovery of the energy industry. While some energy stocks are expected to continue riding a wave created by rising oil prices, the initiatives of governments worldwide to transition to an emissions-free future make the prospects bleak for many energy companies. China Petroleum (NYSE:) & Chemical Corporation (SNP) and Exxon Mobil (XOM) are uniquely positioned to deliver substantial returns in the coming months. However, we think ConocoPhillips (NYSE:) and EOG Resources (NYSE:) may not be able to capitalize on the industry’s recovery and could witness a share-price pullback. Let’s pore over these companies.The continued easing of pandemic-induced restrictions has been leading a reopening of industrial activities and, thus, driving rising energy consumption this year. According to the EIA, the global consumption of petroleum and liquid fuels will average 97.7 million b/d for all 2021, which is a 5.4 million b/d increase from 2020. Furthermore, the global oil and gas EPC market is expected to chart a 5% CAGR from 2019 to 2027.

Investors’ increased optimism about the industry’s growth prospects is evident in the Vanguard Energy ETF’s (VDE) 56% returns