Best Oil Stocks to Buy?
Investors like yourself might be intrigued, even baffled by the price of oil as it consistently stays above $65 a barrel (WTI). And the fact the Saudis could unleash a torrent of oil has make oil companies and investors a little tentative about investing in carbon energy (oil and natural gas).
While you might be focused on the best AI stocks to buy, and I don’t blame you, you’ll note here that the base for oil stocks is strong. After Trump’s announcement last weekend, oil stocks prices have jumped.
But while there are risks, there’s the other side, with a resolution of the trade tariff wars. President Trump’s recent trade deals with the EU, UK, Vietnam and Japan are very interesting. He’s managed to demand that the EU buy oil and gas from the US, to the tune of $750 Billion. Wow, Trump in full of surprises. The net effect will bring Europe and the US closer economically with Trump perhaps influencing Europe to veer away from its dangerous ideological path.
Yet it’s a smart move to support US energy production giving America the brand-boosting crown of world’s largest energy exporter. That deal also discourages high-cost alternative energy sources which are good to have, however it can’t meet the energy needs of an AI and Cryptocurrency-driven economy.
Are Oil Stocks the Best Investment Right Now?
Are oil stocks the best to buy? While it might have been no in the past, the equation has changed considerably. With Russian, Venezuelan and Iranian sanctions likely, and US shale production sliding, there might be a raised floor on the price of oil. The new demand from EU, will shift revenues away from Russia, to the US. Trump will likely be more aggressive about rogue nations such as India and China, buying sanctioned oil. That makes oil stocks a great buy and companies such as BP and Exxon the safest and profitable choices. But there are more. Canadian oil stocks, based in the Alberta oil sands are poised to grow revenues. There are a lot of political walls to break down, yet President Trump has signaled support for the XL Pipeline out of Alberta into the US. Canada is considering building a cross-country pipeline that might send oil and gas eastward, able to reach the US east coast and Europe.
Europe intends to cut off Russian oil, however India and China try to acquire that cheap energy supply regardless of the political and future trade sanctions.
Check out the best oil stocks to buy below.
US Oil Companies Can Produce
With the oil price forecast promising, it stands to reason investment will flood into oil stocks. You can still get a jump on this market by finding oil companies with production capacity and lots of reserves. Of course, that’s a research process for you. Head over to barchart.com or tradingview and see what oil investment analysts believe. Some of the best-performing oil stocks to buy are listed below.
During the recent downturn, even energy stocks got hit, but if anything is investible right now, it would companies in the oil sector. Just recently some Gulf of Mexico oil auctions created quite an event. Everyone’s hungry for investible oil fields and the best oil stocks to buy. And Canadian oil stocks might be up a notch from most US and Global oil stocks. A rising tide raises all ships, but is there one that grow significantly? Find out below.
Which oil stocks to buy depends on your appetite for risk and your profit goals. Big oil companies offer less profit but are safer, while small caps and penny stock are risky, but may have huge upside potential. I’ll introduce you to a few.
Oil companies make their money 3 different ways:
- exploration, production, and oilfield services.
- transportation, processing, and storage of oil and related liquids
- refining and distribution of petroleum products.
If Oil Pushes Towards $100 a Barrel
Oil price forecasts are pushing above $100 and we’re up above the $90 psychological barrier already. That persistent rise is a good sign. The key to further oil price rises is the shortage of oil, rising demand and the neglect of new supply. Supply hit critical lows in 2022 and production didn’t keep up.
Oil industry experts such as Eric Nuttal of Nine Point Partners especially has pointed out the oil crisis fundamentals and that supply is what will drive this epic opportunity in oil. In this video, he explains the dynamics that are causing this energy supercycle. He says this cycle is much more bullish than the last one and prices could hit $140. It hasn’t happened yet, but maybe this is just a delayed issue. The global economy will pick up again, even after the new US tariffs are applied.
It’s been pure politics that’s suppressed the industry, but reality is going to kick back hard this year.
Big money cautious investors are eyeballing the Exxon’s, Conoco Philips, BP, Marathon, and Chevrons. They get all the ink from commentators and investment gurus because they’re safer and dividends can be excellent. In fact, dividend payouts could be really strong in 2022 given how fast oil prices are rising.
It’s one of those very infrequent times when millionaires are going to be made. On the other side of the oil stocks opportunity are penny stocks and small caps. These hold huge potential for price gains.
Take TransOcean Inc. for instance. They may be the leading owner of drilling rigs, exploration equipment among other important assets to the oil industry. For the last few years, with the green regulations, they haven’t been doing well. The world was getting along for a short period without as much exploration, drilling and production.
So RIG has dropped in price to 21 cents at one point. It’s up to almost $4.00 now. In 2014, it reached over $150 a share. So you can see the opportunity with oil forecast to go higher and a huge demand for oil rigs coming in the next few years.
With growing revenues, political might will grow and exploration, drilling and production will resume. When the big profits start rolling, the institutional investors will get jealous and begin plowing their money back into the oil stocks. That alone could push them to record prices.
You could weigh in dividend payments in your oil stock decisions, however the decision to pay them, and how much they pay, is set by the big oil companies. They may not pay anything. The smarter route is to listen to the top oil investment advisors and look at macro factors that are driving parts of the market.
For instance, the Canadian Oil market has been kicked around and underinvested, and has received less revenue than it should. Yet those conditions are about to change. Your very best investment opportunities might be in the Canadian oil sector. Disclosure: I own shares of Transocean, Athabasca Oil Sands, and Baytex Energy. They’re beginning to soar.
Top Oil Stocks Right Now
Take a look at Barchart’s best performing oil stocks of the last 5 days:
One signal that might play into your choices is which stocks are already hot. That’s proof that they may have assets and transportation opportunities that investors are liking. But the market hasn’t opened up fully so other oil companies hold excellent potential. For risk-aversive investors, Yahoo Finance noted these major oil stocks are of strong interest to hedge fund managers:
- Exxon Mobil Corporation (NYSE:XOM),
- Chevron Corporation (NYSE:CVX)
- ConocoPhillips (NYSE:COP)
- EQT Corporation (NYSE:EQT)
- Chesapeake Energy Corporation (NASDAQ:CHK)
- Pioneer Natural Resources Company (NYSE:PXD)
- Marathon Petroleum Corporation (NYSE:MPC)
- Cheniere Energy, Inc. (NYSE:LNG)
- British Petroleum (NYSE: BP Plc ADR)
Investopedia Believes these penny oil stocks are worth a good look:
- Cardinal Energy Ltd. (CJ.TO)
- Baytex Energy Corp. (BTEGF)
- Crew Energy Inc. (CR.TO)
- Transportadora de Gas del Sur S.A. (TGS)
- Tamarack Valley Energy Ltd. (TNEYF)
- Canacol Energy Ltd. (CNE.TO)
- Athabasca Oil Corp. (ATHOF)
- Pipestone Energy Corp. (PIPE.TO)
- CGX Energy Inc. (CGXEF)
- Invesco S&P SmallCap Energy ETF (PSCE)
Best Canadian Oil Stocks
Canadian Oil Companies have extra potential. First they sell primarily heavy crude oil which is used in a wide array of products that will grow in production due to the economic recovery. Canadian oil sells at a discount but that discount will decrease as global demand grows. Political changes in the US could result in the Keystone XL Pipeline being
Does the threat of a stock market crash and housing market crash affect the oil market? An economic collapse would certainly lower demand for oil and gasoline. Yet the outlook for the global economy is good right. Low interest rates takes the pressure of all businesses and experts are giving the global economy the thumbs up.
See more on the stock market forecast overall, and the outlook for the last half of 2025, before making investment decisions. Knowing more might save you from a losing investment.
* The content and opinions contained in this post are those of the author and do not constitute investment advice. This information is for exploring opportunities and entertainment. Please refer to your stock investment advisor for guidance and opinions on investible oil stocks and when to buy.
