10 Hot Oil Stocks To Buy Now

In this article, we discuss 10 hot oil stocks to buy now.

According to a Reuters poll on December 30, oil price gains in 2023 could remain capped amid threats to demand growth from a deteriorating global economy and reemergence of COVID-19 in China. A survey of 30 economists and analysts predicted that Brent crude would average $89.37 per barrel in 2023, a 4.6% decrease from the previous consensus of $93.65 in a November survey. The average price for the global benchmark in 2022 was $99 per barrel. Analysts forecast that the average price of U.S. crude in 2023 will be $84.84 per barrel, a decrease from the previous consensus of $87.80 in the previous month. Edward Moya, senior analyst with OANDA, told Reuters:

“The oil market is still tight despite a weakening global demand outlook as recession fears run wild.”

Oil demand will experience significant growth in the latter half of 2023 due to the lifting of COVID-19 restrictions in China and central banks taking a more relaxed approach to interest rates. It is anticipated that the effects of Western sanctions on Russian oil will be minimal, and analysts at Goldman Sachs wrote in a research note:

“We do not expect an impact from the price cap, which was designed to give bargaining power to third-country buyers.” 

To delve deeper in the oil industry, investors can also check out Top 20 Oil Exporting Countries in 2023, 12 Best Oil Stocks To Buy Now, and 20 Countries with the Largest Oil Reserves. Some of the hot oil stocks to buy now include Exxon Mobil Corporation (NYSE:XOM), Occidental Petroleum Corporation (NYSE:OXY), and Devon Energy Corporation (NYSE:DVN). 

Our Methodology 

For this article we first used stock screeners to identify oil stocks that have gained at least 5% year to date in 2023 and have an average 3-month volume of more than 5 million as of January 31. From this resultant dataset we picked the stocks with highest volumes and share price gains. The list is ranked in ascending order of average 3-month share volume.

Photo by Zbynek Burival on Unsplash

Hot Oil Stocks To Buy Now

10. Enterprise Products Partners L.P. (NYSE:EPD)

Average 3-month Volume as of January 31: 5.53 Million

YTD Share Price Gains as of January 31: 5.61%

Number of Hedge Fund Holders: 21

Enterprise Products Partners L.P. (NYSE:EPD) is a Texas-based company that provides midstream energy services to producers and consumers of natural gas, natural gas liquids, crude oil, petrochemicals, and refined products. On January 5, Enterprise Products Partners L.P. (NYSE:EPD) declared a $0.49 per share quarterly dividend, a 3.2% increase from its prior dividend of $0.475. The dividend is distributable on February 14, to shareholders of record on January 31. 

On January 9, Wolfe Research analyst Keith Stanley upgraded Enterprise Products Partners L.P. (NYSE:EPD) to Outperform from Peer Perform with a $27 price target. The analyst is increasing his investment in “defensive names”. He cited Enterprise Products Partners L.P. (NYSE:EPD)’s favorable balance sheet, 8% yield with extra cash flow, and a robust and diverse core business that withstands market changes. He also noted that the stock’s valuation is now at an average level.

According to Insider Monkey’s data, 21 hedge funds were long Enterprise Products Partners L.P. (NYSE:EPD) at the end of Q3 2022, compared to 23 funds in the prior quarter. Bruce Berkowitz’s Fairholme (FAIRX) is the largest stakeholder of the company, with 3.88 million shares worth $92.3 million. 

Like Exxon Mobil Corporation (NYSE:XOM), Occidental Petroleum Corporation (NYSE:OXY), and Devon Energy Corporation (NYSE:DVN), Enterprise Products Partners L.P. (NYSE:EPD) is one of the hot oil stocks to monitor. 

Here is what Fairholme Capital Management specifically said about Enterprise Products Partners L.P. (NYSE:EPD) in its Q2 2022 investor letter:

“Enterprise Products Partners L.P. (NYSE:EPD) is the largest position in the Fund. Enterprise provides processing and transportation services to producers and consumers of natural gas, natural gas liquids, and oil. These hydrocarbons are critical for modern life and have few, if any, ready substitutes. Commodity prices do not greatly affect the company’s toll road fees. Enterprise is priced at less than nine times distributable cash flows and pays a 7.5% cash distribution.”

9. ConocoPhillips (NYSE:COP)

Average 3-month Volume as of January 31: 5.97 Million

YTD Share Price Gains as of January 31: 6.55%

Number of Hedge Fund Holders: 64

ConocoPhillips (NYSE:COP) is a Texas-based company that produces, transports, and markets crude oil, bitumen, natural gas, liquefied natural gas, and natural gas liquids worldwide. ConocoPhillips (NYSE:COP) is one of the hot stocks to invest in. On January 12, ConocoPhillips, which left Venezuela after its assets were taken over by the government in 2007, announced that it is having initial discussions about selling Venezuelan oil in the United States as a means to recoup the approximately $10 billion owed to them by Venezuela.

On January 23, Barclays analyst Jeanine Wai raised the firm’s price target on ConocoPhillips (NYSE:COP) to $160 from $151 and maintained an Overweight rating on the shares. Although the analyst anticipates a weaker performance for the integrated oil and exploration and production sector in Q4 compared to Q3, she believes the main drivers for sector investment are responsible use of capital and cash returns, which support a positive outlook.

According to Insider Monkey’s Q3 data, 64 hedge funds were bullish on ConocoPhillips (NYSE:COP), compared to 71 funds in the prior quarter. Ken Fisher’s Fisher Asset Management is the leading position holder in the company, with approximately 7 million shares worth $708.5 million. 

In its Q1 2022 investor letter, Diamond Hill Capital, an asset management firm, highlighted a few stocks and ConocoPhillips (NYSE:COP) was one of them. Here is what the fund said:

“We redeployed capital into ConocoPhillips (NYSE:COP), which was trading at a discount to our estimate of intrinsic value and is well positioned over the long run due to its low-risk asset base.”

8. Cenovus Energy Inc. (NYSE:CVE)

Average 3-month Volume as of January 31: 6.33 Million

YTD Share Price Gains as of January 31: 8.27%

Number of Hedge Fund Holders: 47

Cenovus Energy Inc. (NYSE:CVE) was founded in 2009 and is headquartered in Calgary, Canada. The company develops, produces, and markets crude oil, natural gas liquids, and natural gas in Canada, the United States, and the Asia Pacific. The company operates through Oil Sands, Conventional, Offshore, Canadian Manufacturing, U.S. Manufacturing, and Retail segments. It is one of the hot stocks to monitor, with YTD share price gains of 8.27% and average 3-month volume of 6.33 million as of January 31. 

On January 17, Scotiabank analyst Jason Bouvier maintained an Outperform rating on Cenovus Energy Inc. (NYSE:CVE) but lowered the firm’s price target on the shares to C$31 from C$33.

According to Insider Monkey’s third quarter database, Cenovus Energy Inc. (NYSE:CVE) was part of 47 hedge fund portfolios, compared to 42 in the prior quarter. Eric W. Mandelblatt’s Soroban Capital Partners is the largest stakeholder of the company, with 52 million shares worth $798.5 million. 

Here is what L1 Capital Long Short Fund has to say about Cenovus Energy Inc. (NYSE:CVE) in its Q3 2022 investor letter:

“Cenovus Energy (Long -13%) shares declined over the quarter due to an ~18% decline in oil prices on increasing fears of a U.S recession and a slowdown in global growth. Given the long-life nature of its oil sand assets and its low cost of production, we estimate Cenovus is free cash flow break-even at an oil price of ~US$40/bbl. Despite the recent fall, oil prices remain more than double this break-even point, implying considerable free cash flow generation potential for the company at current levels, with Cenovus currently trading on a consensus FY22 free cash flow yield of around 20%. There are also additional value realization catalysts with the company continuing to progress the de-gearing of its balance sheet via organic cash generation and asset sales.”

7. BP p.l.c. (NYSE:BP)

Average 3-month Volume as of January 31: 8.25 Million

YTD Share Price Gains as of January 31: 5.39%

Number of Hedge Fund Holders: 25

BP p.l.c. (NYSE:BP) is a London-based energy company that operates through Gas & Low Carbon Energy, Oil Production & Operations, Customers & Products, and Rosneft segments. BP p.l.c. (NYSE:BP)’s average 3-month volume as of January 31 came in at 8.25 million, and it is one of the hot stocks to invest in. 

On January 27, BP p.l.c. (NYSE:BP) and Equinor ASA (NYSE:EQNR) announced that they submitted a joint proposal to construct the second phase of the Beacon Wind project in response to New York’s third offshore wind energy request. The companies stated that their proposed Beacon Wind 2 project with a capacity of 1,360 MW, located 60 miles east of Long Island, could supply energy to approximately 1 million homes in New York.

Morgan Stanley analyst Martijn Rats on January 23 raised the firm’s price target on BP p.l.c. (NYSE:BP) to 636 GBp from 603 GBp and maintained an Overweight rating on the shares.

According to Insider Monkey’s Q3 data, 25 hedge funds were bullish on BP p.l.c. (NYSE:BP), compared to 27 funds in the prior quarter. Peter Rathjens, Bruce Clarke, and John Campbell’s Arrowstreet Capital is the largest stakeholder of the company, with 27 million shares worth $772.5 million. 

6. Halliburton Company (NYSE:HAL)

Average 3-month Volume as of January 31: 9.2 Million

YTD Share Price Gains as of January 31: 7.12%

Number of Hedge Fund Holders: 48

Halliburton Company (NYSE:HAL) was founded in 1919 and is based in Houston, Texas. The company provides products and services to the energy industry worldwide. Halliburton Company (NYSE:HAL) is one of the largest oil field service companies. On January 24, the company declared a $0.16 per share quarterly dividend, a 33.3% increase from its prior dividend of $0.12. The dividend is payable on March 29, to shareholders of record on March 1. 

On January 30, HSBC analyst Abhishek Kumar increased the price target for Halliburton Company (NYSE:HAL) to $57 from $43.90 and maintained a Buy rating for the stock. In a research note to investors, the analyst stated that Halliburton Company (NYSE:HAL)’s prospects for 2023 look strong, with growth expected from both the U.S. and international markets. 

According to Insider Monkey’s data, 48 hedge funds were bullish on Halliburton Company (NYSE:HAL) at the end of Q3 2022, compared to 43 funds in the last quarter. Richard S. Pzena’s Pzena Investment Management is the largest stakeholder of the company, with 15.6 million shares worth $384.5 million. 

In addition to Exxon Mobil Corporation (NYSE:XOM), Occidental Petroleum Corporation (NYSE:OXY), and Devon Energy Corporation (NYSE:DVN), Halliburton Company (NYSE:HAL) is one of the hottest oil stocks to consider. 

Carillon Tower Advisors made the following comment about Halliburton Company (NYSE:HAL) in its Q4 2022 investor letter:

“Halliburton Company (NYSE:HAL) provides equipment and services to the global energy industry. Shares have been on an impressive trajectory recently, outpacing the notable move in the overall oilfield services and equipment group. Halliburton benefits from the ongoing upswing in global upstream spending and should play a pivotal role in helping exploration and production companies navigate the recent productivity declines in North American shale. The tight services and equipment market has resulted in strong pricing gains and margin expansion, and when coupled with a disciplined approach to capital spending, has paved the way for the stock’s outperformance.”

5. Devon Energy Corporation (NYSE:DVN)

Average 3-month Volume as of January 31: 9.39 Million

YTD Share Price Gains as of January 31: 7.26%

Number of Hedge Fund Holders: 51

Devon Energy Corporation (NYSE:DVN) is an independent energy company, primarily engaged in the exploration, development, and production of oil, natural gas, and natural gas liquids in the United States. On January 24, Wells Fargo analyst Roger Read initiated coverage of Devon Energy Corporation (NYSE:DVN) with an Equal Weight rating and a $70 price target. In a research note to investors, the analyst mentioned that Devon Energy Corporation (NYSE:DVN)’s recent acquisitions and resource base support its aim of up to 5% yearly production growth. However, the neutral rating reflects the market’s perception of the stock’s recent performance. Wells Fargo would also prefer if more of Devon Energy Corporation (NYSE:DVN)’s free cash flow was directed towards its share repurchase program to enhance per share metrics over time. It is one of the hot oil stocks to monitor. 

According to Insider Monkey’s data, Devon Energy Corporation (NYSE:DVN) was part of 51 hedge fund portfolios at the end of September 2022, compared to 57 in the earlier quarter. Rajiv Jain’s GQG Partners is the largest stakeholder of the company, with 10.6 million shares worth $642 million. 

In its Q2 2022 investor letter, GoodHeaven Capital Management, an asset management firm, highlighted a few stocks and Devon Energy Corporation (NYSE:DVN) was one of them. Here is what the fund said:

“Our biggest dollar gainer within this period was Devon Energy Corporation (NYSE:DVN), a position which emanated from a takeover in early 2021 of our long-time holding WPX Energy. We are sitting on a material (unrealized) gain from our cost and are now receiving material dividends thanks to Devon’s thoughtful fixed/variable dividend policy. Energy is now a hot sector for investors but we have had material exposure for a long time. We remember a bit too well $40 oil, NEGATIVELY PRICED front-month oil contract, and what it’s like to own a company with leverage and negative free cash flow during such periods. Our desire to have our biggest portfolio exposures be high-return, growing, reasonably predictable and moderately levered companies led us to reduce our Devon exposure in the past. When the recent facts and circumstances for the industry changed and appeared supportive of healthy oil prices, we decided to maintain a sizable holding and more recently added to the position. At Devon’s Q1 dividend rate, which is most variable in nature, the shares now yield approximately 10% and our yield on our average cost is materially higher. In addition, we maintain additional energy exposure through our long-term (and successful) holding in Hess Midstream and less directly through TerraVest and Berkshire Hathaway’s energy investments.”

4. Marathon Oil Corporation (NYSE:MRO)

Average 3-month Volume as of January 31: 10.63 Million

YTD Share Price Gains as of January 31: 5.66%

Number of Hedge Fund Holders: 50

Marathon Oil Corporation (NYSE:MRO) was founded in 1887 and is headquartered in Houston, Texas. It operates as an independent exploration and production company in the United States and internationally. The company engages in the exploration, production, and marketing of crude oil and condensate, natural gas liquids, and natural gas. Marathon Oil Corporation (NYSE:MRO) on January 25 declared a $0.10 per share quarterly dividend, an 11.1% increase from its prior dividend of $0.09. The dividend is payable on March 10, to shareholders of record on February 15. 

On January 24, Morgan Stanley analyst Devin McDermott upgraded Marathon Oil Corporation (NYSE:MRO) to Overweight from Equal Weight and lifted the price target to $28 from $27. In a research note to investors, the analyst explained that the recent acquisition of Ensign Natural Resources in the Eagle Ford added 130,000 acres to Marathon Oil Corporation (NYSE:MRO)’s holdings with over 600 untapped locations, addressing investor concerns about the company’s inventory longevity. 

According to Insider Monkey’s third quarter database, 50 hedge funds were long Marathon Oil Corporation (NYSE:MRO), compared to 41 in the prior quarter. Ken Fisher’s Fisher Asset Management is the leading stakeholder of the company, with 8.3 million shares worth $188 million. 

Here is what Carillon Tower Advisers had to say about Marathon Oil Corporation (NYSE:MRO) in its “Carillon Clarivest Capital Appreciation Fund” first-quarter 2022 investor letter:

“Stock selection contributed the most while sector allocation was also positive. An underweight to communication services and an overweight to energy helped performance, while an underweight to consumer staples and an overweight to materials detracted. Stock selection was strong within healthcare and materials but was weak within information technology and industrials. Marathon Oil (NYSE:MRO) increased its quarterly dividend and executed an impressive share buyback that blew by the target it originally announced.”

3. Occidental Petroleum Corporation (NYSE:OXY)

Average 3-month Volume as of January 31: 12.53 Million

YTD Share Price Gains as of January 31: 5.05%

Number of Hedge Fund Holders: 74

Occidental Petroleum Corporation (NYSE:OXY) is a Texas-based company that engages in the acquisition, exploration, and development of oil and gas properties in the United States, the Middle East, Africa, and Latin America. It operates through three segments – Oil and Gas, Chemical, and Midstream and Marketing. On December 31, Occidental Petroleum Corporation (NYSE:OXY) was one of the the top two percentage gainers on the S&P 500 and the company saw its shares more than double in value. 

On January 9, Mizuho analyst Nitin Kumar assumed coverage of Occidental Petroleum Corporation (NYSE:OXY) with a Buy rating with a price target of $82, up from $81. The analyst stated that Occidental Petroleum Corporation (NYSE:OXY) should be compared to InterOil and offshore peers instead of larger independent E&Ps. He also mentioned that Occidental Petroleum Corporation (NYSE:OXY)’s lower sustained capital expenses and extensive reserve base can help it balance cash flow priorities that include growth projects, debt reduction, and equity shareholder returns.

According to Insider Monkey’s data, 74 hedge funds were bullish on Occidental Petroleum Corporation (NYSE:OXY) at the end of Q3 2022, compared to 66 funds in the last quarter. Warren Buffett’s Berkshire Hathaway is the biggest position holder in the company, with 194.35 million shares worth $12 billion. 

Here is what Smead Value Fund has to say about Occidental Petroleum Corporation (NYSE:OXY) in its Q3 2022 investor letter:

“Our top-performing stocks in the quarter include Occidental Petroleum (NYSE:OXY). Oil and gas have been the best game in the stock market town this year and it was a pleasant surprise to see home builders pick up even with dour news on interest rates and the economy. For the first three quarters of the year, we should change the name of our fund to the Jed Clampett Fund. Occidental Petroleum (NYSE:OXY), was one of the standouts. Up through the bear market came a “bubblin’ crude!”

2. Exxon Mobil Corporation (NYSE:XOM)

Average 3-month Volume as of January 31: 17.16 Million

YTD Share Price Gains as of January 31: 6.62%

Number of Hedge Fund Holders: 75

Exxon Mobil Corporation (NYSE:XOM) is one of the hot oil stocks to invest in. On January 31, the company declared a quarterly dividend of $0.91 per share, in line with previous. The dividend is payable on March 10, to shareholders of record on February 14. Exxon Mobil Corporation (NYSE:XOM) also increased and extended its share repurchase program with up to $35 billion of cumulative share repurchases in 2023-2024. In 2022, the company earned $55.7 billion and generated $76.8 billion in cash flow from operating activities by utilizing its advantageous portfolio.

On January 17, Scotiabank analyst Paul Cheng upgraded Exxon Mobil Corporation (NYSE:XOM) to Outperform from Sector Perform with a price target of $135, up from $120. According to the analyst, this upgrade is due to the improved cash flow from refining, which will benefit Exxon Mobil Corporation (NYSE:XOM) more than other major oil companies because it has the highest refining exposure. 

According to Insider Monkey’s Q3 data, 75 hedge funds were long Exxon Mobil Corporation (NYSE:XOM), compared to 72 funds in the last quarter. Rajiv Jain’s GQG Partners is the largest stakeholder of the company, with 33.8 million shares worth $3 billion. 

In its Q2 2022 investor letter, First Eagle Investments, an asset management firm, highlighted a few stocks and Exxon Mobil Corporation (NYSE:XOM) was one of them. Here is what the fund said:

“Integrated oil and gas giant Exxon Mobil Corporation (NYSE:XOM) performed well in the second quarter as continued high prices for energy products supported the stock. As the largest refiner in the US, the company has benefitted from wide “crack spreads,” or the margin between the cost of crude oil and the petroleum products extracted from it. Exxon continues to invest in refining capacity in the US, which industry wide has been in steady decline since 2019. We are pleased that Exxon has been using its strong cash flows to reduce debt and to return cash to shareholders through dividends and stock repurchases.”

1. Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR)

Average 3-month Volume as of January 31: 33.03 Million

YTD Share Price Gains as of January 31: 18.74%

Number of Hedge Fund Holders: 33

Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR) explores for, produces, and sells oil and gas in Brazil and internationally. The company operates through Exploration and Production, Refining, Transportation and Marketing, Gas and Power, and Corporate and Other Businesses segments. On January 18, Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR) announced that its total oil and gas production for FY 2022 was 2.68 million boe per day, exceeding past its full-year target of 2.6 million boe per day. It is one of the hot stocks to monitor. 

On December 13, Bradesco BBI analyst Vicente Neto downgraded Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR) to Neutral from Outperform with a R$26 price target. 

Among the hedge funds tracked by Insider Monkey, 33 funds were bullish on Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR) at the end of Q3 2022, compared to 30 in the last quarter. Jim Simons’ Renaissance Technologies is a prominent stakeholder of the company, with 20.25 million shares worth $250 million. 

Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily enewsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below. You can also check out 12 Cheap Energy Stocks To Buy and 10 Recent Spinoff Companies Hedge Funds Are Buying. 

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Disclosure: None. 10 Hot Oil Stocks To Buy Now is originally published on Insider Monkey.