Goldman Sachs is bullish that higher oil prices are here to stay.

In a research note, reported on by, the brokerage predicted that the Brent crude price recovery is sustainable, following years of market volatility. Against this encouraging backdrop of stable, higher oil prices, Goldman Sachs advised investors to pour into the following six U.S. and Canada-based stocks: Occidental Petroleum Corp. (OXY), Delek U.S. Holdings Inc. (DK), Pioneer Natural Resources Co. (PXD), WPX Energy Inc. (WPX), EOG Resources Inc. (EOG) and Suncor Energy Inc. (SU).

"More stable prices at levels above mid-cycle should provide a favorable environment for equities that benefit from higher (particularly coastal) oil prices with favorable corporate returns, [free cash flow] and/or debt-adjusted per share growth," Goldman analysts, including Brian Singer and Neil Mehta, wrote in the note published Monday.

Last week, the Organization of Petroleum Exporting Countries (OPEC) revealed that its members had agreed to increase world oil production by 1%, the equivalent of 1 million barrels, to counter reported supply shortages. News that more oil could hit the market, coupled with trade tensions, saw  benchmark Brent crude futures for August delivery fall 1.2% to $74.68, reported The Street. (See also: OPEC vs the U.S.: Who Controls Oil Prices?)

Despite the oil cartel agreeing to raise output, Goldman Sachs is confident that Brent crude will continue to trade in the range of $70 to $80 per barrel in fiscal 2018 and 2019. The brokerage added that it is unlikely that output will increase by more than 600,000 to 700,000 barrels per day because some OPEC members lack the capacity to ramp up production.

"The combination of strong demand growth in 2018-19, involuntary disruptions and falling spare capacity can keep oil prices above mid-cycle even as potential increases in OPEC supply keep inventories from moving meaningfully below normal,” Goldman analysts wrote.

In the research note, analysts also predicted potential upside for Houston, Texas-based Schlumberger NV (SLB), the world's largest oilfield services company. "[Schlumberger] offers higher leverage to Brent price than to WTI or Midland than its peers," Goldman said. "GS is bullish on the outlook for Brent, and that should be a positive for international and offshore activity." (See also: 6 Lagging Oil Stocks Ready to Rebound.)