5 Oil and Gas Stocks With More Fuel in the Tank (2024)

FAQs

What are the best oil stocks to buy right now? ›

One major reason for the stocks' outperformance is that energy companies have become much more efficient, figuring out how to make money at lower oil prices. So even if oil prices fall, investors are betting that oil earnings will stay strong enough to keep the stocks aloft.

Don't Expect Energy Stock Price Returns of 2022 in 2023

Given the lower price of oil, it would be surprising if oil stocks experienced another strong year in 2023. To begin with, companies are operating at a slow burn rate and are not planning any capital expenditures focused on growth.

Consumer Discretionary: This sector includes companies in retail, travel, entertainment and restaurants. These businesses benefit indirectly from lower oil prices, as consumers looks for places to spend the money that they save on fuel.

It Is Not Too Late To Buy Energy Stocks

If you are wondering about oil prices, the energy market, and whether it's too late to buy Energy Stocks (NYSEARCA: XLE) we're here to tell you no. Absolutely not.

Crude prices could remain muted in the near term due to continued macroeconomic uncertainty and some supply and demand dynamics. However, oil appears poised to rebound later this year. This means now might be the perfect time to buy oil stocks, since many have followed oil prices lower in recent months.

Investing in the oil and gas industry carries a number of significant risks. Three of those risks are commodity price volatility risk, cutting of dividend payments for those companies that pay them, and the possibility of an oil spill or another accident during the production of oil or natural gas.

When should I buy oil stocks? ›

It's generally better to buy oil stocks when oil prices are low and expected to rise rather than when they are already high. However, the price of oil affects different types of oil stocks in different ways. Checking out the recent price of oil is a critical first step in oil investing.

Based on analyst ratings, Exxon Mobil's 12-month average price target is $129.54. Exxon Mobil has 21.91% upside potential, based on the analysts' average price target. Yes, go to the Analysts' Top Stocks tool to see stocks with a Strong Buy or Strong Sell analyst rating consensus, according to the top performers.

Brent crude oil price forecasts

Meanwhile, the ANZ WTI oil price forecast suggested the US oil to rise to $104 by the end of 2023, and stay at that level in 2024, averaging at $89 in 2023 and $104 in 2024.

With Dhar forecasting an uptick in oil demand from India and China, the world's two most populous nations, he forecasts Brent oil futures will increase from $US82 per barrel in the first half of 2023 to $US88 per barrel in the second half.

The administration expects Brent spot prices to average $78.65 per barrel in 2023, versus $85.01 per barrel previously, the EIA said. It expects WTI crude spot prices to average $73.62 per barrel in 2023, versus $79.24 per barrel previously.

Stock Price Forecast

The 4 analysts offering 12-month price forecasts for Oil States International Inc have a median target of 10.50, with a high estimate of 15.00 and a low estimate of 7.50. The median estimate represents a +52.62% increase from the last price of 6.88.

Oil prices are currently trading around $95 per barrel for Brent crude, and just below $89 a barrel for the U.S. West Texas Intermediate. Analysts told CNBC they expect oil prices to hold steady through the second half of 2022, though they said the potential impact of an economic recession has not yet been priced in.

Wall Street is very bullish on oil

While others aren't quite as bullish, the consensus is that oil prices will rebound in 2023. Analysts note several catalysts that should fuel crude's rebound in 2023.

Oil prices fell more than 2% on Tuesday as lingering economic concerns and expectations of further interest rate hikes that could curtail fuel demand growth countered signs of improving short-term consumption gains.

Alkaline Fuel Cells

Operating at 60-70ºC (140-158ºF), AFCs are among the most efficient type of fuel cells, reaching up to 60% efficiency and up to 87% combined heat and power.

What are the best stocks for hydrogen fuel cells? ›

Direxion Hydrogen ETF (HJEN)

At the top of this list of the best hydrogen stocks to buy is the Direxion Hydrogen ETF (NYSEARCA:HJEN). Not only does it offer broad diversification, but it also does so at a low cost.

After a year of sky-high gas prices, experts are predicting that fuel costs could be lower in 2023. The average gallon of gas in the U.S. is projected to cost $3.49 this year, according to a report from price comparison app GasBuddy, a nearly 50-cent decrease from the 2022 average of $3.96.

But owners of vehicles with internal combustion engines will still be permitted to operate or resell them after 2035. With the average lifespan of a car in the U.S. pegged at about 12 years, there will be a need for gasoline for decades to come.

The liquid energy company has received massive investments from five billionaires, including Bill Gates and Jeff Bezos. Nomi Prins claims that it has a $4 stock owned by billionaires. However, the stock price hasn't grown significantly in the last six months, and its future remains uncertain.

Average oil prices should remain below 2022's $100/bbl average for international Brent benchmark, but exceed the medium-term price of $50-70/bbl, according to Moody's Investors Service.

An increase in oil prices usually lowers the expected rate of economic growth and increases inflation expectations over shorter horizons. Decreasing economic growth prospects, in turn, lower companies' earnings expectations, resulting in a dampening effect on stock prices.

Rising Chinese demand will be the main driver of higher crude prices this year.

Buy Stock in an Oil and Gas Company

If you want to invest in oil with little money, your brokerage account is probably the best place to look. With the new advent of no-fee stock trades at big brokerage houses, you can buy shares of stock without worrying about fees cutting into your investment.

It's still a good time to invest in energy stocks. While the price of crude oil has come down from the lofty heights seen last year when West Texas Intermediate (WTI), the U.S. standard benchmark, peaked above $120 a barrel, oil and gas companies are still reaping the benefits of elevated oil prices.

Will natural gas stocks go up in 2023? ›

Although we expect the Henry Hub price to average less than $4.00/MMBtu in 2023, we forecast natural gas prices will increase from their recent lows of close to $2.00/MMBtu as demand for natural gas increases.

Is Chevron stock a Buy, Sell or Hold? Chevron stock has received a consensus rating of buy. The average rating score is Aa2 and is based on 52 buy ratings, 29 hold ratings, and 3 sell ratings.

Large increases in stocks of crude and fuels occurred as a result of recessions in 2001/02, 2008/09 and 2020, and mid-cycle slowdowns in 1997/98 and 2014/15. There is no counter-case where inventories have risen significantly while business activity has continued expanding rapidly.

The all-time high Exxon stock closing price was 117.32 on April 28, 2023. The Exxon 52-week high stock price is 119.92, which is 14.2% above the current share price. The Exxon 52-week low stock price is 80.69, which is 23.1% below the current share price. The average Exxon stock price for the last 52 weeks is 103.46.

The 23 analysts offering 12-month price forecasts for Exxon Mobil Corp have a median target of 125.00, with a high estimate of 146.00 and a low estimate of 110.00. The median estimate represents a +19.08% increase from the last price of 104.97.

Crude prices could remain muted in the near term due to continued macroeconomic uncertainty and some supply and demand dynamics. However, oil appears poised to rebound later this year. This means now might be the perfect time to buy oil stocks, since many have followed oil prices lower in recent months.

Benefits of investing in oil and gas

Oil and gas stocks can produce significant capital gains from share price appreciation and attractive dividend income during periods of high oil and gas prices.

It's Still Not Too Late To Get Into Energy Stocks the energy sector is marching higher on results that include plans for increased dividends and share repurchases and new all-time highs are in sight. If you are wondering if it's too late to get into energy stocks the best answer is no.

Oil prices fell more than 2% on Tuesday as lingering economic concerns and expectations of further interest rate hikes that could curtail fuel demand growth countered signs of improving short-term consumption gains.

Are energy stocks good during inflation? ›

The revenues of energy stocks are naturally tied to energy prices, a key component of inflation indices. So by definition, they generally have performed well when inflation rises.

The largest share of this total is going to upstream oil and gas, where investment is expected to rise by 7% in 2023 to more than USD 500 billion, bringing this indicator in aggregate back to the levels of 2019.

Stock Price Forecast

The 12 analysts offering 12-month price forecasts for Northern Oil and Gas Inc have a median target of 45.50, with a high estimate of 58.00 and a low estimate of 39.00. The median estimate represents a +41.09% increase from the last price of 32.25.

Is Chevron stock a Buy, Sell or Hold? Chevron stock has received a consensus rating of buy. The average rating score is Aa2 and is based on 52 buy ratings, 29 hold ratings, and 3 sell ratings.