The 11 best oil company stocks to buy now have shown resilience even during the recent volatile conditions, restoring some confidence in them among investors. The last two years have been very tough on the oil industry, as low oil prices have weighed on profit and stifled growth. With improving industry fundamentals and increasing consumption, now might be a good time to invest in oil stocks.
The oil industry has been nothing short of a roller coaster ride. The U.S shale oil boom added roughly 6 million barrels per day during the 2008-2015 period and the market entered into a surplus state. That led to oil prices declining due to worldwide oversupply. However, members of the Organization of Petroleum Exporting Countries (OPEC) agreed to reduce their combined output by 1.2 million barrels per day during the final quarter of 2016, which resulted in a nominal increase in oil prices. Prices are expected to stabilize in 2017 on the backdrop of a rebalance in the supply and demand fundamentals.
The companies behind the 11 best oil company stocks to buy now have worked hard to reduce their costs and operate far more efficiently. These companies have, therefore, positioned themselves not only to survive at lower oil prices, but to absolutely thrive should prices rise again in the future.
Several hedge funds that we track became upbeat about oil company stocks during the first quarter based on their recent wave of 13F filings. Over the next few pages, we have analyzed the best oil company stocks for investing based on that hedge fund sentiment. That’s what we do at Insider Monkey and our flagship strategy has returned 44.2% since February 2016 vs. a 29.6% gain for the S&P 500 index ETF (SPY). Our most recent stock picks, which were disclosed to our subscribers in the middle of February, beat the market by 5 percentage points in the three months that followed and our latest picks were released in the middle of May. Our system is easy for investors to implement, with just a small batch of trades to be executed once per quarter. We are also offering a 14-day money-back guarantee on our premium newsletters, plus you can get $90 off by using this link, so don’t miss this chance to check out our latest picks risk-free and see if Insider Monkey’s simple and effective small-cap strategy would make a good addition to your portfolio.
In the following list, oil companies are ranked based on their popularity amongst the cream of the crop of the hedge fund community. Check it out beginning on the next page. For further reading afterwards, don’t miss our list of the 11 best insurance companies to invest in 2017.