- As oil prices are expected to rise further, some projections showed that Brent crude could reach US$ 90 per barrel this year.
- Baytex Energy’s stock is trending in Canada as oil prices are increasing.
- The BTE stock has surged by about 381 per cent year-to-date (YTD). In addition, the stock's relative growth was nearly 42.5 per cent in the last three months.
Oil prices climbed for the fifth consecutive day and Brent inched closer to US$ 80 per barrel, while WTI prices were US$ 75.58 per barrel, at the time of writing. The rise in oil prices comes amid worries over oil supply as the demand is increasing with the easing of public health restrictions.
As oil prices are expected to rise further, some estimates said Brent crude could reach US$ 90 per barrel this year. In Canada, stocks of Baytex Energy Corp. (TSX:BTE) seem to have picked up against the back of this news and investors are giving attention to the Oil & Gas company.
Is Baytex Energy (TSXBTE) stock a buy as oil prices continue to soar
On Monday, September 27, the BTE stock picked up at the market open and was trading about five per cent higher in comparison to the previous close at C$ 3.325 per share. The volume of the Baytex shares traded was 2.6 million.
Notably, the stock has breached the previous 52-week high of C$ 3.235 per share on Friday, September 24. If the momentum continues throughout the trading session, the stock could settle at a higher price at market close.
Baytex Energy Corp. (TSX:BTE) stock performance
The BTE stock has surged by about 381 per cent year-to-date (YTD). In addition, the stock's relative growth was nearly 42.5 per cent in the last three months as it outperformed the Toronto Stock Exchange 300 Composite Index's growth of 28.7 per cent in the same period.
Due to a strong performance in the second quarter of this year, Baytex updated its future guidance for 2021 and said that its production for the year would be between 79,000-80,000 barrels of oil equivalent per day (boepd) instead of 77,000-79,000 boepd.
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In Q2 2021, the Oil & Gas company achieved a net income of C$ 1.1 billion in comparison to a net loss of 138.5 million in the same quarter of the previous year. The petroleum and natural gas sales increased from C$ 152.7 million in Q2 2020 to C$ 442.4 million in Q2 2021.
If oil prices continue to rise, there are chances that the stocks of energy companies could climb higher as demand for these stocks will likely rise.
Often investors are looking to diversify their investment portfolio and low-cost energy stocks could be preferred for higher yields by the investors.