‘The world should be worried’: Saudi Aramco — the world’s largest oil producer — has issued a dire warning over 'extremely low' capacity. Here are 3 stocks for protection

Rising gas prices made headlines throughout the past year, and Nasser warns that oil prices could quickly spike — again.

“When you erode that spare capacity the world should be worried. There will be no space for any hiccup — any interruption, any unforeseen events anywhere around the world.”

If you share Nasser’s view, here are three oil stocks to bet on. Wall Street also sees upside in this trio.

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Shell (SHEL)

Headquartered in London, Shell is a multinational energy giant with operations in more than 70 countries. It produces around 3.2 barrels of oil equivalent per day, has an interest in 10 refineries, and sold 64.2 million tons of liquefied natural gas last year.

It’s a staple for global investors, too. Shell is listed on the London Stock Exchange, Euronext Amsterdam, and the New York Stock Exchange.

The company’s NYSE-listed shares are up 26% year to date.

Piper Sandler analyst Ryan Todd sees an opportunity in the oil and gas supermajor. Last week, the analyst reiterated an ‘overweight’ rating on Shell while raising his price target from $65 to $71.

Considering that Shell trades at around $56 per share today, Todd’s new price target implies a potential upside of 27%.

Chevron (CVX)

Chevron is another oil and gas supermajor that’s benefiting from the commodity boom.

For Q3, the company reported earnings of $11.2 billion, which represented an 84% increase from the same period last year. Sales and other operating revenues totaled $64 billion for the quarter, up 49% year over year.

In January, Chevron’s board approved a 6% increase to the quarterly dividend rate to $1.42 per share. That gives the company an annual dividend yield of 3.0%.

The stock has enjoyed a nice rally too, climbing 57% in 2022.

Morgan Stanley analyst Devin McDermott has an ‘equal weight’ rating on Chevron (not the most bullish rating) but raised the price target from $193 to $196 last month. That implies a potential upside of 4% from the current levels.

Exxon Mobil (XOM)

Commanding a market cap of over $460 billion, Exxon Mobil is bigger than Shell and Chevron.