Energy Stocks Surge as Oil Prices Hit 72% YTD Gain

Oil prices have surged by 72% year-to-date, affecting fuel costs and inflation expectations. This has created opportunities for certain energy stocks to gain momentum.

National Energy Services Reunited (NESR) is a company that provides production, drilling, and evaluation services to oil and gas producers in the Middle East. NESR generates about $993.6 million from production services and $625.3 million from drilling and evaluation, with roughly $1.6 billion coming from the MENA region.

NESR's operations are concentrated in the MENA region, making it susceptible to geopolitical disruptions or regulatory shifts that could impact its margins and growth. However, the company has a strategic localization and deepening relationships with national oil companies, positioning it for large multi-year contract awards.

Tourmaline Oil (TSX:TOU) is another energy stock that may benefit from the current market conditions. As an upstream producer, Tourmaline's cash generation closely tracks moves in oil and gas benchmarks. The company has a long-term LNG supply agreement with Uniper and secured firm transportation to the U.S. Gulf Coast, providing direct access to premium global markets and pricing.

Greenfire Resources (GFR) is a pure-play upstream producer that develops and operates Athabasca oil sands assets in Alberta. Greenfire's performance is closely linked to global crude prices, making it an attractive option for investors looking for exposure to the energy sector.