10 Oil Stocks To Buy Amid Ukraine Crisis

Published February 24, 2022 at 11:26 am EST Updated August 19, 2026 at 7:07 am EDT

In this article, we discuss 10 oil stocks to buy amid the Ukraine crisis.

Oil prices have surged tremendously owing to the Ukraine-Russia tensions, since supply disruption worldwide is on the horizon. Brent crude oil, an international benchmark for oil prices, climbed to a seven-year peak of more than $99 a barrel after Russian president Vladimir Putin sent troops into Ukraine. On Thursday, Brent rose above $105 a barrel for the first time since 2014.

Joe Biden announced that the United States and its allies will impose “severe sanctions” on Russia in light of these attacks. Russia is the second largest oil exporter after Saudi Arabia and the biggest global producer of natural gas, and the sanctions will impact Russian financial institutions, businesses, and other government entities, in an attempt to limit the Russian government’s capacity to raise money from Western financial markets. According to President Biden, defending NATO territory could directly impact the public in terms of higher energy prices.

“Simply No Alternatives”

Troy Vincent, senior market analyst at DTN Markets, told CNBC “there are simply no alternatives” to Russian supplies of oil and gas “that do not entail far higher prices and potentially the development of severe shortages”.

Energy prices rose close to 30% in Europe after these attacks since oil and gas is transmitted mainly through Ukraine, with Russia being the primary supplier. Similarly, if the major superpowers successfully isolate Russia and make oil deals with Iran instead, prices will rise globally since the influx of demand cannot be matched sufficiently as Iran cannot compete with Russia’s volumes of oil.

Rory Johnson, managing director and market economist at Toronto-based Price Street Inc., forecasted that in case of an all-out war between Russia and NATO forces, oil prices could skyrocket, reaching “$130, $150 – pick a number in the hundreds and you could very easily justify it”.

Amid rising tensions, accelerating oil prices, and market uncertainty, some of the best oil names in the market include Chevron Corporation (NYSE:CVX), Exxon Mobil Corporation (NYSE:XOM), and Shell plc (NYSE:SHEL).

10 Oil Stocks To Buy Amid Ukraine Crisis

Photo by Zbynek Burival on Unsplash

Our Methodology

We selected oil stocks which were recently supported by positive analyst ratings amid an uncertain economic outlook and crashing stock markets. JPMorgan also ranked most of these stocks as “outperformers.”

A broader gain in oil prices will boost the fundamentals of these stocks in the months to come.

We have also mentioned the hedge fund sentiment around each stock, which was determined from the 924 elite funds tracked by Insider Monkey as of Q4 2021.

Oil Stocks To Buy Amid Ukraine Crisis

10. Valero Energy Corporation (NYSE:VLO)

Number of Hedge Fund Holders: 35

Valero Energy Corporation (NYSE:VLO) is a Texas-based oil and gas company that manufactures and markets gasoline, ethanol, diesel fuel, ultra-low-sulfur diesel, jet fuel, asphalt, petrochemicals, and lubricants. In the last six months, the stock has gained almost 33%.

On January 27, Valero Energy Corporation announced earnings for the fourth quarter. The company posted an EPS of $2.47, beating estimates by $0.63. Revenue for the period jumped 116.23% year-over-year to $35.90 billion, topping estimates by $7.89 billion.

Piper Sandler analyst Ryan Todd on January 25 raised the price target on Valero Energy Corporation to $95 from $83 and kept an Overweight rating on the shares. While the multi-year bull case for crude oil is now largely consensus, few in the market are convinced of a similar, multi-year setup for the U.S. refiners, the analyst told investors in a research note.

Valero Energy Corporation declared on January 20 a $0.98 per share quarterly dividend, in line with previous. The dividend will be paid on March 3, to shareholders of record on February 3. Valero Energy Corporation priced a public offering of $650 million aggregate principal amount of 4.0% Senior Notes due 2052 on February 2.

According to the fourth quarter database of Insider Monkey, 35 hedge funds were bullish on Valero Energy Corporation, up from 32 funds in the prior quarter. Ken Griffin’s Citadel Investment Group held the largest stake in Valero Energy Corporation, with 1.3 million shares worth $104.5 million.

Hedge fund sentiment was positive around Valero Energy Corporation in the fourth quarter of 2021, just like Chevron Corporation, Exxon Mobil Corporation, and Shell plc (NYSE:SHEL).

9. Marathon Oil Corporation (NYSE:MRO)

Number of Hedge Fund Holders: 40

Based in Houston, Texas, Marathon Oil Corporation (NYSE:MRO) is a successor of Standard Oil that produces petroleum, natural gas, and natural gas liquids. Publishing its Q4 earnings report on February 16, Marathon Oil Corporation posted an EPS of $0.77 and a $1.80 billion revenue, both above market consensus.

Marathon Oil Corporation declared on January 26 a per share quarterly dividend of $0.07, a 16.7% increase from its prior dividend of $0.06. The dividend is distributable on March 10, to shareholders of record on February 16.

On February 23, Piper Sandler analyst Mark Lear upgraded Marathon Oil Corporation to Overweight from Neutral with a price target of $27, up from $22. The company “abruptly shifted from balance sheet repair to shareholder return” in Q4, the analyst told investors in a bullish note. He upgraded Marathon Oil Corporation on the back of its “strong shareholder return message.”

In Q4 2021, 40 hedge funds in the database of 924 elite funds tracked by Insider Monkey held long positions in Marathon Oil Corporation, with combined stakes amounting to $969 million. Holocene Advisors was the biggest stakeholder of the company, with 9.3 million shares worth roughly $154 million.

8. Marathon Petroleum Corporation (NYSE:MPC)

Number of Hedge Fund Holders: 41

Marathon Petroleum Corporation (NYSE:MPC) is an American company engaged in oil refining, in addition to transporting petroleum, petrochemicals, and gasoline.

Marathon Petroleum Corporation announced its Q4 results on February 2, posting earnings per share of $1.30, exceeding estimates by $0.74. Revenue over the period increased almost 96% from the prior-year quarter, reaching $35.61 billion, outperforming estimates by $9.82 billion.

Cowen analyst Jason Gabelman raised the price target on Marathon Petroleum Corporation to $90 from $83 and kept an Outperform rating on the shares on February 3. The analyst said the shares should sustain earnings-day outperformance versus peers despite one-time tailwinds in results.

On January 27, Marathon Petroleum Corporation declared a quarterly dividend of $0.58, in line with previous. The dividend is payable on March 10, for shareholders of record on February 16.

Among the hedge funds tracked by Insider Monkey, 41 funds were bullish on Marathon Petroleum Corporation, with total stakes valued at $2.2 billion. Paul Singer’s Elliott Management held the leading position in Marathon Petroleum Corporation, with 10.5 million worth $676.3 million.

Here is what Clark Street Value has to say about Marathon Petroleum Corporation in its Q4 2021 investor letter:

“During the worst of covid, I bought some LEAPs on Marathon Petroleum (MPC) as a proxy for Par Pacific (PARR) since long dated options weren’t available on the later. Those MPC calls expire next month and I’ll take profits, with PARR I’ve reduced my position throughout the year and might sell the rest early next year, I’ve owned it for 6-7 years and it has gone nowhere, they haven’t touched the NOLs, just a difficult business that I probably don’t understand as well as I should.”

7. Shell plc (NYSE:SHEL)

Number of Hedge Fund Holders: 41

Shell plc (NYSE:SHEL) is a British multinational oil and gas supermajor that explores, transports, and refines LNG, lubricants, natural gas, petrochemicals, and petroleum.

Cowen analyst Jason Gabelman raised the price target on Shell plc (NYSE:SHEL) to $58 from $53 and kept an Outperform rating on the shares on February 3. The company is exploring ways to upgrade its cash return framework, which could come with the Q2 earnings, the analyst told investors, and believes the prospect of “upgrading an already attractive cash return story should be supportive” of the shares.

Shell plc (NYSE:SHEL) reported on February 3 its fourth quarter results. The company posted an EPS of $1.66, surpassing estimates by $0.41. Shell plc (NYSE:SHEL)’s revenue jumped roughly 94% year-on-year to $85.28 billion, outperforming market consensus by $26.62 billion.

On February 3, Shell plc (NYSE:SHEL) declared a quarterly dividend of $0.48 per average diluted share, in line with previous. The dividend is payable on March 28, for shareholders of record on February 18. Share buybacks of $8.5 billion for the first half of 2022 were also announced by Shell plc (NYSE:SHEL).

The fourth quarter database suggested that 41 hedge funds were bullish on Shell plc (NYSE:SHEL), up from 33 funds in the preceding quarter. Fisher Asset Management owned the largest stake in Shell plc (NYSE:SHEL), with 18.7 million shares worth $813 million.

Here is what Goehring & Rozencwajg Associates has to say about Royal Dutch Shell plc (NYSE:SHEL) in its Q3 2021 investor letter:

“Royal Dutch Shell’s ESG challenges continue unabated. A Dutch court ruled in May that Royal Dutch Shell must cut its CO2 output by 45% by 2030 to align their policies with the Paris Climate Accord. In a statement issued after the verdict, a Shell spokesperson acknowledged that “urgent action is needed on climate change and the company is accelerating efforts to reduce emissions.” If the pressure from the Dutch court system was not enough, an activist shareholder has proposed breaking the company apart to address ESG concerns. On October 27th, Third Point Management announced the following.

“If Shell pursues this type of strategy it would probably lead to an acceleration of carbon dioxide reduction. […] Breaking Shell into two operating units would create a standalone legacy energy business (upstream, refining, and chemicals) that could slow capex beyond what it has already promised, sell assets, and prioritize return of cash to shareholders which can be reallocated into low-carbon areas of the market.”

Shell has already cut spending dramatically over the last decade. After having peaked at $39 bn in 2013, upstream capital spending fell to only $17 bn in 2020 – a drop of nearly 60%. Spending has barely recovered in the three quarters of 2021. A lack of spending has already impacted production. Proforma for the 2016 acquisition of BG Group, Shell’s total production has fallen 13% since capital spending peaked in 2013. These trends are accelerating: Shell’s production over the first nine months of 2021 have fallen 7% compared with the same period last year.

If Royal Dutch Shell’s upstream capital spending remains at today’s depressed levels, we estimate the company will only be able to replace 30% of production with new reserves and that production will fall 40% over the next nine years. If spending is further curtailed (as is being proposed), Shell’s oil and natural gas production would collapse – something that may have already started.”

6. Phillips 66 (NYSE:PSX)

Number of Hedge Fund Holders: 41

Phillips 66 (NYSE:PSX) is an American multinational oil and gas company supplying natural gas, petrochemicals, aviation fuels, motor fuels, and lubricants. Phillips 66 (NYSE:PSX) also offers oil refining and service stations.

Among the hedge funds tracked by Insider Monkey in Q4 2021, 41 hedge funds were bullish on Phillips 66 (NYSE:PSX), up from 34 funds in the quarter prior. Israel Englander’s Millennium Management owned the largest stake in Phillips 66 (NYSE:PSX), holding more than 3 million shares worth $228.5 million.

On January 28, Phillips 66 (NYSE:PSX)’s Q4 financial results were published. The company posted earnings per share of $2.94, beating consensus estimates by $1.01. Revenue over the period jumped over 100% year-on-year to $33.57 billion, exceeding market estimates by $6.17 billion.

Phillips 66 (NYSE:PSX) declared on February 9 a $0.92 per share quarterly dividend, payable on March 1, to shareholders of record on February 22, offering a forward yield of 4.11%.

RBC Capital analyst Elvira Scotto raised the price target on Phillips 66 (NYSE:PSX) to $101 from $97 and kept an Outperform rating on the shares on February 1. The analyst cited the company’s Q4 earnings beat, with strong performance across all segments. He also pointed to the company’s dividend increase during the quarter, along with its stated intention to resume share purchases in 2022.

In addition to Chevron Corporation, Exxon Mobil Corporation, and Shell plc (NYSE:SHEL), institutional investors are pouring into Phillips 66 (NYSE:PSX).

5. Halliburton Company (NYSE:HAL)

Number of Hedge Fund Holders: 43

Halliburton Company (NYSE:HAL) is a Texas-based multinational corporation that operates as a leading oil field service company, owning multiple subsidiaries across more than 70 countries.

On January 24, Halliburton Company declared a $0.12 per share quarterly dividend, a 166.7% increase from its prior dividend of $0.045. The dividend is payable on March 23, to shareholders of record on March 2.

Publishing its Q4 earnings on January 24, Halliburton Company reported above market consensus figures for EPS and revenue. Halliburton Company’s per share earnings came in at $0.36, and revenue for the period was $4.28 billion.

RBC Capital analyst Keith Mackey on January 25 raised the price target on Halliburton Company to $34 from $32 and kept an Outperform rating on the shares. The company’s Q4 results topped expectations on most key metrics, and Halliburton Company increased its dividend earlier than expected. This reflects the management’s confidence in its ability to expand its margins while controlling capital expenditures throughout the cycle, the analyst told investors in a bullish thesis.

Pzena Investment Management held the largest Halliburton Company stake in Q4 2021, with 38.6 million shares worth $883.35 million. Overall, 43 hedge funds were bullish on Halliburton Company, up from 29 funds in the quarter earlier.

4. Diamondback Energy, Inc. (NASDAQ:FANG)

Number of Hedge Fund Holders: 45

Headquartered in Midland, Texas, Diamondback Energy, Inc. (NASDAQ:FANG) is engaged in hydrocarbon exploration and the distribution of petroleum, natural gas, and natural gas liquids.

Diamondback Energy, Inc.’s Q4 results came in on February 22, and the company posted earnings per share of $3.63, exceeding estimates by $0.27. Diamondback Energy, Inc.’s revenue gained approximately 163% year-on-year, reaching $2.02 billion, surpassing estimates by $339.49 million.

On February 22, Diamondback Energy, Inc. declared a $0.60 per share quarterly dividend, a 20% increase from its prior dividend of $0.50. The dividend will be paid on March 11, to shareholders of record on March 4.

TD Securities analyst Menno Hulshof on February 23 raised the price target on Diamondback Energy, Inc. to $150 from $140 and kept a Buy rating on the shares following the “solid beat” in Q4. The analyst considers current share levels an attractive entry point for a “Permian pure-play with a peer-leading cost structure, and a strong commitment to returning at least” 50% of free cash flow.

Among the hedge funds tracked by Insider Monkey, 45 funds reported owning stakes in Diamondback Energy, Inc. in Q4 2021, with combined stakes amounting to $572.40 million. Harris Associates is the largest Diamondback Energy, Inc. stakeholder, with a $328 million position in the company.

Here is what Miller Opportunity Equity has to say about Diamondback Energy, Inc. in its Q4 2021 investor letter:

“Diamondback Energy (FANG) returned 14.4% in the quarter as oil price rose and fell during the quarter ending the period largely in the same place that it started. The company reported strong 3Q results beating on the top and bottom line. The company reported revenue of $1.9B beating consensus of $1.5B with EPS of $2.94 beating expectations for $2.79. The beat was driven by a combination of higher volumes, higher realizations, and efficiency gains. The company increased its total production guidance for the year to 370-372mboe/d1 (up from 363-370mboe/d) while lowering Capital Expenditure (CAPEX) guidance for the second time this year to $1.49-1.53B. The company raised the dividend for the third time this year to $2/share annually while authorizing a new $2B share repurchase program. Starting in 4Q21, the company plans to return 50% of Free Cash Flow to shareholders through the base dividend and a combination of buybacks and special dividends. Finally, the CEO Travis Stice announced plans to reduce methane emissions by 70% as part of the firm’s ESG initiative.”

3. Chevron Corporation (NYSE:CVX)

Number of Hedge Fund Holders: 53

Chevron Corporation, a successor of Standard Oil, is a multinational American producer of oil, gasoline, natural gas, and other petrochemicals. The stock has gained roughly 39% in the last six months, and the company posted a Q4 revenue of $48.13 billion, up 90.64% year-on-year, outperforming market consensus.

Chevron Corporation on January 26 declared a $1.42 per share quarterly dividend, a 6% increase from its prior dividend of $1.34. The dividend will be paid on March 10, to shareholders of record on February 16.

On February 23, Chevron Corporation unveiled a pilot project with Project Canary to lower and independently certify methane emissions at five oil well sites in Texas and Colorado.

Cowen analyst Jason Gabelman raised the price target on Chevron Corporation on February 23 to $140 from $133 and kept an Outperform rating on the shares. The analyst expects Chevron Corporation’s upcoming analyst day to deliver updated guidance and an update on TCO which is its largest project and it remains a top pick.

Warren Buffett’s Berkshire Hathaway is the biggest Chevron Corporation stakeholder as of Q4 2021, with 38.2 million shares worth $4.4 billion. Overall, 53 hedge funds were bullish on Chevron Corporation, up from 51 funds in the prior quarter.

Here is what Goehring & Rozencwajg Associates has to say about Chevron Corporation in its Q3 2021 investor letter:

“After successfully replacing 25% of Exxon’s board of directors despite owning just 0.02% of the outstanding equity, Engine No. 1, the climate-focused activist hedge fund, met with Chevron’s management late last summer. In discussions that were later described as “cordial,” Chevron executives shared their plan to reduce carbon emissions. Subsequently, Chevron announced new plans to further reduce carbon output, along with their intention to appoint a new director with “environmental expertise.” Although it remains unclear exactly what Engine No. 1 is planning, rumors suggest the fund has contacted other investors, strongly suggesting they intend to launch a second campaign in the not-too-distant future.

What should Chevron expect?

It was recently reported by The Wall Street Journal that Exxon was considering abandoning two massive natural gas projects: the 75 trillion cubic foot (tcf ) Rovuma LNG project (capital cost $30 bn) and the 5 tcf Ca Voi Xanh offshore-Vietnam gas project (capital cost $10 bn). Exxon board members (most likely including the three supported by Engine No. 1) have publicly expressed concerns about both projects. According to internal reports, these projects are among the highest CO2 producers in Exxon’s pipeline; it is no surprise these projects have been called into question. However, we find the plight of both fields to be perplexing since production would almost certainly be used to displace coal in electricity generation, cutting CO2 emissions by nearly 50%. This fact seems to be lost on the new Exxon board members.”

2. Occidental Petroleum Corporation (NYSE:OXY)

Number of Hedge Fund Holders: 58

Occidental Petroleum Corporation (NYSE:OXY)’s oil and gas operations are concentrated in the United States, the Middle East, and Colombia. Occidental Petroleum Corporation is also a manufacturer of petrochemicals.

In its Q4 earnings guidance, published on February 24, Occidental Petroleum Corporation’s consensus EPS estimate is $1.10 versus a loss per share of $0.78 in the prior-year quarter, and the consensus revenue estimate came in at $7.39 billion, as compared to $3.35 billion last year.

On January 31, Barclays analyst Jeanine Wai raised the price target on Occidental Petroleum Corporation to $44 from $40 and kept an Overweight rating on the shares. The analyst forecasts a relatively in-line quarter on the numbers for Occidental Petroleum Corporation. The company is in a good position to discuss a framework for outsized cash returns alongside earnings, Wai told investors in a research note.

According to the Q4 database of Insider Monkey, 58 hedge funds were long Occidental Petroleum Corporation, with collective stakes valued at $3.8 billion. Icahn Capital LP is the biggest stakeholder of the company, with 45 million shares worth $1.30 billion.

Here is what Smead Capital Management has to say about Occidental Petroleum Corporation in its Q3 2021 investor letter:

“Oil stocks dominated our winners for the quarter. We showed that we have unlimited ability to tempt fate by buying into Occidental Petroleum (OXY) this year after it was our biggest loser of 2020. It gained 16.64% during the third quarter.”

1. Exxon Mobil Corporation (NYSE:XOM)

Number of Hedge Fund Holders: 71

Exxon Mobil Corporation is a multinational oil and gas corporation headquartered in Irving, Texas. Amid rising oil prices, Exxon Mobil Corporation has fared well, with the stock gaining close to 39% in the last six months.

Exxon Mobil Corporation posted on February 1 its Q4 earnings, announcing an above consensus EPS of $2.05. Revenue for the quarter jumped 82.56% from year-over-year to approximately $85 billion, exceeding estimates by $6.24 billion.

On January 26, Exxon Mobil Corporation declared a quarterly dividend of $0.88 per share, to be paid on March 10 for shareholders of record on February 10. Barclays analyst Jeanine Wai raised the price target on Exxon Mobil Corporation to $91 from $73 and kept an Overweight rating on the shares on February 9.

Among the hedge funds monitored by Insider Monkey, 71 funds were bullish on Exxon Mobil Corporation, up from 64 funds in the prior quarter. Rajiv Jain’s GQG Partners held the leading stake in the company, with 32.3 million shares worth approximately $2 billion.

Here is what First Eagle Investment Management has to say about Exxon Mobil Corporation in its Q2 2021 investor letter:

“Leading contributors in the First Eagle Global Fund this quarter included Exxon Mobil Corporation. The continued recovery in oil prices as economies reopen helped fuel another strong performance across the energy complex, including shares of Exxon Mobil. Exxon Mobil recently lost a proxy fight with an activist investor that took three of the company’s 12 board seats. While the press was focused on the investor’s concerns over Exxon Mobil’s long term energy transformation strategy, other factors fundamental to shareholder returns—like capital discipline and balance sheet management—were also at play.”

You can also take a look at 10 Best Stocks to Buy According to Warren Buffett and 10 Best Robinhood Stocks To Buy Right Now.

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