Why You Should Watch EOG, COP, XOM Stocks Amid Rising Oil Prices

Key TakeawaysSanctions against Russian oil exports to China and India have pushed oil prices back into bullish territory.The price of West Texas Intermediate crude is trading above $78 per barrel, the highest since August.Stocks that look to gain include oil exploration and production companies like ExxonMobil and EOG Resources.The Biden administration's introduction of new sanctions targeting Russian oil exports to China and India has contributed to a resurgence in oil prices, pushing them back into bullish territory. As a result, exploration and production companies are once again in focus, with EOG Resources, Inc. EOG, ConocoPhillips COP and Exxon Mobil Corporation XOM well-positioned to benefit.Oil Markets Heat Up as Bulls Take ChargeThe price of West Texas Intermediate (WTI) crude is currently trading above $78 per barrel, having recently peaked at $78.58, its highest level since Aug. 15.The Biden administration has introduced its most extensive sanctions package to date, aimed at curbing Russia's oil and gas revenues. The move is intended to strengthen Kyiv's position and provide leverage for future negotiations toward peace in Ukraine. The incident, which poses a risk to already tightening global supplies, has propelled crude oil prices upward.Exploration & Production Business to GainAs oil prices continue to climb, the trend is expected to benefit exploration and production companies, particularly since the breakeven costs in many of the United States' prolific shale plays remain well below current price levels.Breakeven WTI Price in US Shale Plays Image Source: StatistaTherefore, it is advisable to focus on major exploration and production companies with significant upstream operations in key shale plays, as they are well-positioned to benefit from rising oil prices.   3 Must-Watch Upstream Stocks: EOG, COP, XOMEOG Resources In the United States, EOG Resources, carrying a Zacks Rank #3 (Hold), is one of the foremost explorers and producers of oil and gas, with its crude reserves spanning across the United States and Trinidad. The upstream energy major possesses an extensive inventory of high-quality drilling wells in low-cost, premium resources, ensuring a strong production outlook amid a handsome crude pricing environment.ConocoPhillipsBased on production and crude and gas reserves, #3 Ranked ConocoPhillips is among the largest exploration and production players in the world. With its acquisition of Marathon Oil, COP has broadened its key Lower 48 portfolio, enabling it to expand its presence in prolific, low-cost U.S. basins such as Eagle Ford, Bakken, Delaware and Permian, adding more than 2 billion barrels of resources. Thus, the rising oil price is highly favorable for COP’s upstream operations. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.ExxonMobilWith a strong focus on strengthening its presence in the Permian – the most prolific basin in the United States – ExxonMobil completed the acquisition of Pioneer Natural Resources Company on May 3. With 1.4 million net acres of the combined company in the Delaware and Midland basins and an estimated 16 billion barrels of oil equivalent resource, ExxonMobil has greatly transformed its upstream portfolio.Notably, Zacks #3 Ranked ExxonMobil aims to double production in the Permian Basin from current levels to 2.3 million barrels of oil equivalent per day (MMBoE/d) by 2030. Thus, XOM’s overall upstream business is expected to generate handsome cashflows for shareholders, with oil prices remaining in the bullish territory.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.1% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Exxon Mobil Corporation (XOM): Free Stock Analysis Report ConocoPhillips (COP): Free Stock Analysis Report EOG Resources, Inc. (EOG): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks