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As the countries phase out pandemic-driven restrictions, demand for crude oil is rising quickly, causing oil prices to climb to multi-year highs. OPEC+ countries recently agreed to increase oil production and supply by 2 million bpd or 0.4 million bpd per month from August through December 2021. The cartel aims to phase out production cuts entirely by around September 2022. Thus, MRO and APA should benefit from the industry tailwinds.
MRO has gained 33% over the past six months, while APA has returned 4% over the period. Also, MRO’s 77.2% gains year-to-date compare with APA’s 26.2% returns. MRO is the clear winner with 105.9% gains versus APA’s 15.3% in terms of past year’s performance.
