Barclays says there's a buying opportunity in these energy stocks should oil surge to $130

Published Mon, Mar 7 202211:17 AM EST

There's a buying opportunity in some energy stocks should oil prices continue shooting upwards of $130 a barrel, according to Barclays. Overnight Monday, energy prices reached multi-year highs , with the U.S. oil benchmark West Texas Intermediate crude futures briefly surging to $130 per barrel . The price has since fallen back down to trade at about $118 per barrel. By contrast, all three major stock market averages were down Monday morning. The Dow Jones Industrial Average lost more than 400 points, dipping 1.3%. The S & P 500 fell by 1.3%, and Nasdaq Composite slumped by 1.6%. Barclays' analysts issued a list of 19 energy picks that are historically tied to oil prices, but have lagged the sector rally of the past month. All are overweight-rated stocks, with potential upside to price targets of 10% or more. Here are five stocks that made the list: Phillips 66 — Shares for the energy manufacturing company ticked upward 0.63% to $84.73 per share on Monday morning. The $95 price target issued by Barclays analysts represents a 12% upside. The company is expected to generate steady cash flow from its diversified businesses, including its refineries and its decarbonization initiatives. Year to date, the stock is up 16.2%. Valero Energy — Shares for the refining company edged upward 0.38% to $86.31 per share, 12% below the target price of $97. The refining company is regarded as well-positioned to take advantage of rising oil prices. The stock is up 14.6% year to date. Schlumberger — The energy company's stock soared 8.2% to $42.20 per share. The $48 price target represents 13% upside to where the stock traded Monday morning. Schlumberger's stock price has been snapping back since April 2014, after declining from an all time high of $118 per share that year. In 2022, the stock is up 41% thus far. Energy Transfer — Shares advanced 0.62% to $10.50 after trading opened Monday. The $13 price target from Barclays represents 24% upside. The firm's stock price has declined for years; in 2015, it reached a high of roughly $33 per share. The firm is expected to benefit from rising oil prices. This year, the stock is up 26.7%. Exxon Mobil — The energy company jumped 2.2% to nearly $86 per share. That implies a 6% upside to the $91 target price. Last week, Exxon Mobil CEO Darren Woods said markets could expect "significantly higher prices," as investors grow concerned of higher energy prices from the Russia-Ukraine conflict. Year to date, the stock is up 38.7%. Other stocks that made the list include Hunting, SBM Offshore , Tecnicas Reunidas, bp , Neste, Shell Plc , TotalEnergies SE , Capricorn Energy , NuStar Energy , ChampionX , National Energy Services Reunited , Pason Systems Inc. , Ranger Energy Services , and Tenaris S.A . —CNBC's Michael Bloom contributed to this report.

Dust blows around a crude oil pump jack and flare burning excess gas at a drill pad in the Permian Basin in Loving County, Texas, November 25, 2019.

Angus Mordant | Reuters

There's a buying opportunity in some energy stocks should oil prices continue shooting upwards of $130 a barrel, according to Barclays.