Permian Producers Poised to Gain as Oil Prices Hover Around $90
The Middle East conflict has driven up oil prices, pushing West Texas Intermediate (WTI) crude to around $90 per barrel. The U.S. Energy Information Administration (EIA) projects WTI at $84.65 per barrel for this year, higher than the $65.40 seen last year.
With high oil prices, Permian producers are likely to continue gaining. The EIA estimates that total crude oil production in the Permian will be 6.76 million barrels per day this year, up from 6.57 million barrels per day last year.
Diamondback Energy (FANG) is a pure-play Permian player with a large and high-quality drilling site. ExxonMobil (XOM) has a strong footprint in the Permian and has been employing lightweight proppant technology to boost well recoveries. Chevron (CVX) also has a significant presence in the basin.
These companies are well-positioned to benefit from the ongoing strength of oil prices, which is expected to continue supporting exploration and production activities.