The energy sector remains robust amidst escalating geopolitical tensions, resilient demand, technological advancements, and production cuts. Considering that, it could be wise to buy energy stocks Plains All American Pipeline, L.P. (PAA), Archrock, Inc. (AROC), and Newpark Resources, Inc. (NR) this week.
Shale production, which accounts for approximately three-quarters of total U.S. oil output, is on the upswing thanks to enhanced well productivity. The U.S. Energy Information Administration (EIA) projects that oil output from key shale-producing regions will hit a six-month peak in June, reaching 9.85 million barrels per day (bpd), the highest level since December. Moreover, recently, the International Energy Agency (IEA) stated that global oil demand growth is anticipated to be at 1.1 million barrels per day (bpd) this year.
