Are these the best oil stocks to buy on the stock market today?
Like it or not, oil stocks seem to be all the rage on the stock market today. Much of this could be due to rising crude oil prices. Naturally, as the price of a barrel of this increasingly valuable commodity rises, investor interest in oil stocks will also increase. A recent report from the International Energy Agency (IEA) would support the current movement in oil prices. Yesterday, in its monthly report, the IEA raised its forecast for growth in world oil demand for 2022 to 210,000 barrels per day (BPD). This would represent a whopping 99.6 million BPD, exceeding pre-pandemic levels. As a result, Brent crude futures rose 1% throughout Thursday, settling at $ 84 a barrel, a three-year high.
Given all of this, some of the biggest names in the oil industry might continue their current rallies. To take PA (NYSE: BP) and Schlumberger (NYSE: SLB) for example. Shares of both companies are now up more than 14% in the past month. Not to mention that the two companies have also more than doubled their net revenues year over year in their latest quarterly reports. Overall, oil seems to be another interesting sector to consider in the stock market now. If all of this interests you now in the best oil stocks, here are five to consider.
Best Oil Stocks To Buy [Or Sell] In October 2021
For starters, let’s take a look at ExxonMobil. In short, the Texas-based natural gas company is today a goliath among players in the oil industry. It is one of the largest refiners and distributors of petroleum products. In addition, the company’s chemical division is one of the largest in the world. Given the size and scope of ExxonMobil’s offerings, XOM stock could be one of the best oil stocks to watch right now. Since the start of the year, XOM’s stock is up over 49%.
On the contrary, the company does not appear to be slowing down operationally anytime soon. Earlier this week, ExxonMobil announced plans to build its first large-scale advanced plastic waste recycling facility. Right now, the company’s recycling facility may be one of the largest in North America. ExxonMobil estimates it will be able to process up to 500,000 tonnes of plastic waste per year by 2026. With the growing need for more sustainable business practices, ExxonMobil’s move could be strategic. Could all of this make XOM stock a top choice for you?
Royal Dutch Shell
then, we have Royal Dutch Shell or Shell for short. Overall, the most seasoned oil investors are familiar with the company’s extensive network of oil and gas operations. Tastes span over 70 countries and territories around the world. In retail, the company is engaged in the exploration, production and marketing of oil, gas and liquefied natural gas. Among other things, Shell is also building a renewable energy portfolio to keep up with current clean energy trends.
On that note, the company continues to play on the clean energy front. As of this week, he is now leading a consortium of organizations to enable âlarge-scale liquid hydrogen storage for international commercial applicationsâ. Notably, the US Department of Energy (DOE) is currently funding this company with $ 6 million. Time will tell if Shell can get the most out of this exciting new project. With the company’s shares having gained more than 20% in the past six months, would you consider investing in RDS.A shares now?
Another name in the petroleum business to consider now would be ConocoPhillips. It is a multinational company primarily engaged in the exploration of hydrocarbons. The likes that have it and continue to position it well in the booming oil and gas industries now. For a sense of scale, ConocoPhillips currently has operations in 15 countries. More importantly, the COP stock appears to be on a roll this year as well. This is evident as the company’s shares have risen 86% since the start of the year. Even so, could it be worth it to jump on the company’s stock now?
Well, for one thing, ConocoPhillips seems to be shifting into high gear now. For starters, since last month the company has made several notable updates to its current multi-year plans. These include, but are not limited to, an approximately 7% increase in its quarterly dividend and plans to acquire Shell’s Delaware Basin assets for $ 9.5 billion in cash. With all of this in mind, some would argue that the COP stock might be looking at long term growth. Would you accept?
Western Oil is next on our list of top oil stocks to note today. Essentially, the company’s hydrocarbon exploration efforts are primarily based in the United States, the Middle East and Colombia. In addition to this, Occidental conducts its petrochemical manufacturing processes in the United States, Canada and Chile. Impressively, the stock of OXY is now up over 200% over the past year.
Despite its current momentum, Occidental continues to find ways to optimize its operations now. Namely, the company would sell its interests in two Ghanaian offshore fields for $ 750 million. Given the current debt incurred by Occidental to facilitate its recent acquisition of Anadarko Petroleum, this move makes sense. According to Occidental, the proceeds of this sale will be used to reduce its debt. Since the start of the year, the company has already processed approximately $ 4.5 billion in debt through strategic divestitures and cash flow generation. All things considered, could OXY stocks be worth buying now?
Topping our list today is Chevron. As the second largest oil company in the United States, Chevron is no newcomer to the industry. As a result, it could, in theory, be in a good position to make the most of the current surge in oil prices. This would be the case because Chevron is currently active in more than 180 countries around the world. To underline, CLC action envisions gains of over 80% from its lowest pandemic level.
Either way, the company is arguably pulling all cylinders now. Since yesterday, Chevron is now looking to invest in the development of a sustainable aviation fuel. It aims to do this by setting up facilities specially designed for this purpose. Ideally, the company seeks to produce aviation fuel from inedible corn. If things go as planned, it would reduce the carbon intensity of the life cycle of conventional aviation fuels, according to Chevron. Not to mention, it comes after the company released some stellar numbers in its last fiscal quarter report. It more than doubled its total revenue, net income and earnings per share compared to the same quarter a year ago. So, do you think the CLC title can continue on its current course?