Oil and Gas Stocks Poised for Gains as Diesel Prices Remain High

The current high diesel prices and supply strains in the fuel market are creating stress for various industries. Oil and gas stocks, however, may benefit from this situation due to their exposure to rising energy security concerns and anticipated global demand growth.

Dana Gas PJSC (ADX:DANA), a Middle East-focused energy group, generates around $376 million from integrated oil and gas activities in the Kurdistan Region of Iraq and Egypt. The company's operations are closely linked to fuel markets that are back in the spotlight due to diesel prices above £2 per liter.

Ovintiv (OVV) is another oil and natural gas producer, primarily operating in North America. It generates around $6.0 billion from USA operations and $3.6 billion from Canadian operations. Ovintiv's high-quality asset base positions the company to capitalize on rising energy security concerns and anticipated global demand growth.

Surge Energy (TSX:SGY) is a Calgary-based producer that explores, develops, and produces crude oil and natural gas assets across Western Canada. The company generates around CA$534 million from oil and gas exploration and production activities, with revenue entirely sourced from Canada. Surge Energy's internal outlook for $335 million of adjusted funds flow and $145 million of free cash flow in 2026 is supported by higher planning assumptions around US$75 to US$80 WTI.