On January 15, CNBC reported that energy markets have seen sharp swings in recent days as investors react to a violent crackdown on civil unrest in Iran and how the US may respond to this situation.
Worries increased after reports suggested the possibility of military action by the US against Iran. This came after the seizure of the president of Venezuela, another oil-rich country, which added uncertainty in global energy markets.
Earlier in the week, oil prices climbed to multi-month highs following reports that the US and the UK were pulling personnel from a military base in Qatar. This led to speculation that a strike on Iran could be imminent. However, prices dropped on Thursday, January 15, after President Trump stepped back from the threat of immediate action.
Marc Ostwald, chief economist and global strategist at ADM Investor Services in London, told CNBC that traders are preparing for continued volatility. He said:
“Oil markets are very much subject to two opposing forces, and the overall profile of supply outpacing demand … leaving the market trading oil from the short side.”
Marc Ostwald, chief economist and global strategist at ADM Investor Services in London, told CNBC that traders are preparing for continued volatility. He said oil markets are being pulled in two opposite directions, with supply expected to grow faster than demand, which has kept many investors positioned on the short side of the market.
Paul Jackson, global market strategist for EMEA at Invesco, told CNBC that he expects oil prices could find support from an accelerating global economy in 2026. However, he pointed out that “geopolitical developments are difficult to predict and can rapidly change course.”
With this background in mind, let’s take a look at the 12 best American energy stocks to buy now.
Our Methodology
To compile our list of the 12 best American energy stocks to buy now, we used stock screeners from Finviz and Yahoo Finance to find the largest American energy companies. We sorted our results based on market capitalization and picked the top 40 American stocks. Next, we focused on the top 12 stocks most favored by institutional investors. Data for the hedge fund sentiment surrounding each stock was taken from Insider Monkey’s Q3 2025 database of 978 elite hedge funds. Finally, the 12 best American energy stocks to buy now were ranked in ascending order based on the number of hedge funds holding stakes in them as of Q3 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 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
12 Best American Energy Stocks to Buy Now
12. EOG Resources, Inc. (NYSE:EOG)
Number of Hedge Fund Holders: 61
EOG Resources, Inc. (NYSE:EOG) is one of the best American energy stocks to buy now. On January 16, KeyBanc downgraded its rating on EOG Resources, Inc. (NYSE:EOG) from Overweight to Sector Weight. KeyBanc pointed to worries about “clear signs of degradation” in both the Eagle Ford and Delaware Basin assets, along with a major drop in activity in Eagle Ford.
KeyBanc analyst Tim Revzan noted that production trends can be affected by flow dynamics from extra-large (XL) laterals in the first six to twelve months. The firm believes that productivity concerns in EOG Resources, Inc.’s (NYSE:EOG) Texas-based assets justify a cautious view on the stock.
Despite this, KeyBanc is positive on the company’s Utica asset. The research firm believes that EOG Resources, Inc. (NYSE:EOG) is “slowly reinventing itself” by developing its Utica and Dorado assets and through its international exploration efforts.
Earlier, on January 13, RBC Capital also reduced its price target on EOG Resources, Inc. (NYSE:EOG) from $145 to $138 and kept its Outperform rating. This reflects the firm’s updated commodity price outlook, especially for oil.
RBC Capital now expects WTI crude oil prices to be $56.00 per barrel in 2026, down from its earlier forecast of $60.06 per barrel.
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.
11. Occidental Petroleum Corporation (NYSE:OXY)
Number of Hedge Fund Holders: 62
Occidental Petroleum Corporation (NYSE:OXY) is one of the best American energy stocks to buy now. On January 16, Scotiabank slightly reduced its price target on Occidental Petroleum Corporation (NYSE:OXY) from $47 to $46 and maintained its Sector Perform rating on the stock. This change came as part of the firm’s update of price targets for US integrated oil companies, refining companies, and large-cap exploration and production companies under its coverage.
Scotiabank believes quarterly earnings will be straightforward as there were no major winter weather disruptions. Looking ahead, the research firm noted that investors are likely to focus on whether recent market volatility will lead companies to change their 2026 guidance. The firm also pointed out that attention may be on whether any exploration and production companies will introduce cost-cutting programs.
Previously, on January 2, Occidental Petroleum Corporation (NYSE:OXY) reported that it completed the sale of OxyChem, its chemical business, to Berkshire Hathaway for $9.7 billion. The company expects this deal will support its strategy to strengthen its balance sheet and improve its focus on its diverse oil and gas portfolio.
Occidental Petroleum Corporation (NYSE:OXY) is an American multinational energy company with assets primarily in the United States, the Middle East, and North Africa. The company is one of the largest oil and gas producers in the US.
