Are these 2 ASX energy shares a buy amid booming oil prices?

These energy shares could be in the buy zone…

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With oil prices trading above US$120 per barrel and looking unlikely to retreat meaningfully any time soon, energy shares look well-placed to deliver bumper profits in the near term.

If you’re wanting to gain exposure to this side of the market, then the two ASX shares listed below could be worth considering. Here’s what you need to know:

BetaShares Global Energy Companies ETF (ASX: FUEL)

The first option for investors to consider is actually an exchange traded fund (ETF). The BetaShares Global Energy Companies ETF could be a top option for investors as it provides them with easy access to some of the biggest energy companies in the world.

Among its 40+ holdings you will find giants such as BP, Chevron, ConocoPhillips, ExxonMobil, Phillips 66, Royal Dutch Shell, and Total.

BetaShares notes that these companies are typically larger, more geographically diversified, and more vertically integrated than Australian listed energy companies.

The fund manager’s chief economist, David Bassanese, recently suggested that the FUEL ETF could be a great way for investors to protect against inflation.

Santos Ltd (ASX: STO)

Another option for investors to consider in the energy sector is Santos. It is one of Australia’s leading energy producers with a number of quality operations and growth projects.

The team at Morgans remain very positive on the company despite its strong gain (32%+) this year. They recently named Santos as one of the best shares to buy this month. The broker currently has an add rating and $10.00 price target on its shares, which compares favourably to the current Santos share price of $8.76.

Morgans commented:

We expect the resilience of STO’s growth profile and diversified earnings base see it best placed to outperform against a backdrop of a broader sector recovery. While pre-FEED, we see Dorado as likely to provide attractive growth for STO, while its recent acquisition increasing its stake in Darwin LNG has increased our confidence in Barossa’s development.

PNG growth meanwhile remains a riskier proposition, with the government adamant it will keep a larger share of economic rents while operator Exxon has significantly deferred growth plans across its global portfolio.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended BetaShares Global Energy Companies ETF - Currency Hedged. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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