Oil could stay above $100 to the end of 2022

Oil could stay above $100 to the end of 2022 - here are three ways to try to make money if that happens.

The world is going through a severe energy crisis, and the fact that the price of a barrel of oil was trading at less than $0 in early 2020 is now a distant memory. Both Brent and WTI comfortably crossed $100.

There is an expectation that oil will remain above $100 for the rest of 2022 due to demand, supply, and production.

Crude oil demand is recovering as the global economy recovers - people are traveling and on the move again. Meanwhile, production failed to meet this demand because producers had been under-invested for nearly a decade. Moreover, sanctions against Russia have cut off supplies to one of the world's largest energy exporters. Earlier this year, Goldman Sachs called for oil prices to continue rising above $100 in 2023.

Here are three of the most extensive oil stocks that benefit from these dynamics.

Chevron

Investment legend and Berkshire Hathaway CEO Warren Buffett recently revealed a massive stake in Chevron. Gorilla Oil and Gas is now the fourth-largest publicly-traded company in Berkshire.

Chevron is at the forefront of the energy boom. In 2021, it produced more than 1.8 million barrels of oil and natural gas liquids per day. Meanwhile, the company's free cash flow has risen more than 1,000% to $21.1 billion over the past year.

Currently, the stock is trading with a cash flow to price ratio of 10. It also offers a reasonable dividend yield of 3.5%.

Occidental Petroleum

Occidental Petroleum is another big energy bet in Buffett's portfolio. The Oracle of Omaha added this new position at the beginning of 2022. The stock is up about 97%, so the billionaire has done well.

Occidental is the largest landowner in the prestigious Permian Basin, with its origins concentrated in western Texas and southeastern New Mexico. — $9.2 billion in 2021 — much of which is returned to investors through dividends and buybacks.

OXY has already started a $2.5 billion buyback program to reward long-term shareholders. Currently, the stock is trading with a still cheap cash flow of $5.

Exxon Mobil

Exxon Mobil is probably the best-known oil stock globally - and for a good reason. As one of the world's largest energy producers (and the largest in the United States), Exxon is the definition of an excellent behemoth.

In 2021, Exxon earned $23 billion and generated $48 billion in operating cash flow. Management also recently launched a $10 billion share buyback program.

The stock is currently trading at a price-free cash flow ratio of 7. Meanwhile, Exxon's dividend yield remains flat at 4.1%. Investors looking for a solid way to secure some passive income while hedging against severe inflation.