Investing in energy stocks can be a volatile experience. In 2022, the S&P 500’s energy sector outperformed other sectors, rising by 59%, while the overall market experienced a 20% decline. Investors may wonder if they should invest in gas and oil stocks in 2023. This blog post will look at some gas and oil stocks to be aware of in the coming year.
Factors to Consider in 2023
Several factors may affect the performance of gas and oil stocks in 2023. The oil demand is expected to grow as the world economy recovers from the pandemic. Meanwhile, supply is likely to remain tight because of limited refinery capacity. However, it is likely that the energy sector will see a different level of performance than it did in 2022. Investors need to consider several risks, including the duration of the war in Ukraine, China’s recovery, and OPEC’s oil supply chain dynamics.
Gas and Oil Stocks to Watch
Here are some gas and oil stocks to keep an eye on in 2023:
ExxonMobil (XOM): ExxonMobil is a multinational oil and gas corporation. The company has a market capitalization of around $447 billion and is the world’s largest publicly traded oil and gas company. The company’s stock has risen by over 50% since the beginning of 2022.
Chevron (CVX): Chevron is another multinational energy corporation. The company has a market capitalization of around $300 billion and is the world’s third-largest oil and gas company. The company’s stock has risen by over 40% since the beginning of 2022.
Royal Dutch Shell (RDS-A): Royal Dutch Shell is a multinational oil and gas company based in the Netherlands. The company has a market capitalization of around $200 billion. It is one of the largest oil and gas companies in the world. The company’s stock has risen by over 50% since the beginning of 2022.
BP (BP): BP is a British multinational oil and gas company. The company has a market capitalization of around $120 billion and is one of the world’s seven oil and gas “supermajors.” The company’s stock has risen by over 40% since the beginning of 2022.
ConocoPhillips (COP): ConocoPhillips is an American multinational energy corporation. The company has a market capitalization of around $125 billion. It is the world’s largest independent oil and gas exploration and production company. The company’s stock has risen by over 75% since the beginning of 2022.
The gas and oil sector had a strong year in 2022, but it is still being determined whether this momentum will continue in 2023. Investors must consider the risks associated with gas and oil stocks, such as the ongoing conflict in Ukraine and the impact on China’s economy. However, some gas and oil stocks may still provide opportunities for investors, such as ExxonMobil, Chevron, Royal Dutch Shell, BP, and ConocoPhillips. As with any investment, it is essential to research and consider your risk tolerance before investing in gas and oil stocks.