Crude oil futures did not change a lot on Wednesday, June 18, as President Trump said Iran wanted to talk about its nuclear program after six days of Israeli airstrikes on Iran.
US crude oil futures went up by 0.4% while the global benchmark, Brent, rose 0.25%. On Tuesday, prices had jumped more than 4% as Trump demanded that Iran surrender unconditionally.
President Trump told reporters outside the White House that Iranian officials had contacted him and suggested sending a delegation to the White House for negotiations.
Since Israel started its campaign against Iran last Friday, oil prices have increased by about 10%.
Investors are focused on the Strait of Hormuz, a narrow waterway between Iran and Oman. This strait is very important because between 18 and 19 million barrels of crude oil and fuels pass through it per day. This is nearly one-fifth of the world’s consumption.
In 2024, about 85 million tons of liquefied natural gas (LNG) from Qatar and the United Arab Emirates also went through the Strait of Hormuz, making up around 20% of global demand. If maritime activity through the Strait of Hormuz is disrupted, it could cause serious problems for oil and gas markets and push prices much higher.
With this background in mind, let’s take a look at the 10 best oil and gas stocks to buy now.
Oil and gas engineers surveying an expansive landscape for producing oil fields.
Our Methodology
To compile our list of the 10 best oil and gas stocks to buy now, we used stock screeners from Finviz and Yahoo Finance to find the largest oil and gas companies. We sorted our results based on market capitalization and picked the 30 largest stocks. We also reviewed various financial media reports and online resources to compile a list of the best energy stocks to buy. Next, we focused on the top 10 stocks most favored by institutional investors. Data for the hedge fund sentiment surrounding each stock was taken from Insider Monkey’s Q1 2025 database of 1,000 elite hedge funds. Finally, the 10 best oil and gas stocks to buy now were ranked in ascending order based on the number of hedge funds holding stakes in them as of Q1 2025.
Why do we care about what hedge funds do? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
10 Best Oil and Gas Stocks to Buy Now
10. Occidental Petroleum Corporation (NYSE:OXY)
Number of Hedge Fund Holders: 59
Occidental Petroleum Corporation (NYSE:OXY) is one of the 10 best oil and gas stocks to buy now. On May 9, JPMorgan lowered its price target on Occidental Petroleum Corporation (NYSE:OXY) from $52 to $47 and kept a “Neutral” rating.
JPMorgan analysts highlighted the corporation’s Q1 2025 results and the management’s efforts to cut costs amid a challenging oil price environment.
Occidental Petroleum Corporation (NYSE:OXY) reported that it reduced drilling cycle times in the Permian Basin by 15% through enhanced well designs and strong execution. These actions led to a 10% decrease in well costs year-over-year, exceeding the target of 5-7% that the company had set just a few months ago.
Thanks to these improvements, the corporation plans to decommission two drilling rigs in the Permian in 2025. However, Occidental Petroleum Corporation (NYSE:OXY) aims to bring more wells online and with slightly increased production even with this reduced rig count.
The corporation has lowered its full-year capital guidance by $200 million. Additionally, Occidental Petroleum Corporation (NYSE:OXY) aims to cut its operational expenses by $150 million in 2025.
Occidental Petroleum Corporation (NYSE:OXY) is an American multinational energy company with assets mainly in the US, the Middle East, and North Africa. It is one of the largest oil and gas producers in the US.
9. EOG Resources, Inc. (NYSE:EOG)
Number of Hedge Fund Holders: 64
EOG Resources, Inc. (NYSE:EOG) is one of the 10 best oil and gas stocks to buy now. On June 13, Jefferies increased its price target on EOG Resources, Inc. (NYSE:EOG) from $144 to $148 while keeping a “Buy” rating.
This decision came after discussions with EOG Resources, Inc.’s (NYSE:EOG) Vice President and Head of Investor Relations Pearce Hammond. The talks focused on the company’s recent Encino acquisition and plans for development in the future.
Jefferies confirmed EOG Resources, Inc.’s (NYSE:EOG) earlier statement that the Encino acquisition would boost EBITDA and cash flow by 10%. However, the firm’s own analysis suggests that free cash flow could improve even more, especially after taking into account about $150 million in synergies and expected changes in production.
The higher price target is based on the assumption by Jefferies that the Encino acquisition will be completed in the third quarter of 2025. This deal is expected to provide EOG Resources, Inc. (NYSE:EOG) with more production assets and operational efficiencies.
EOG Resources, Inc. (NYSE:EOG) is one of the largest American crude oil and natural gas exploration and production companies with proven reserves in the US and Trinidad.
