In this article, we are going to discuss the 12 Best American Oil Stocks to Buy Now.
The American oil industry was among the biggest beneficiaries of the soaring crude prices amid the Middle East conflict. This was especially the case for the country’s shale industry, which had been struggling with escalating costs and declining well productivity.
According to estimates from Oil Change International, oil companies in the United States could achieve around $38 billion in additional revenues from crude oil exports alone this year. Additionally, the global supply disruptions also led to a massive spike in refining crack spreads, pushing the US refining margins to soar by an average of around 73% YoY during the first quarter.
While a peace deal has now been signed and oil prices have plummeted from their multi-year highs, it is unlikely that they will return to their pre-war levels anytime soon.
According to analysts at Rystad Energy, the Gulf region oil exports could take until next year to reach pre-crisis levels, as it will be a big challenge to restart the ageing oilfields in Iraq and Kuwait that were shut within weeks of closure of Hormuz. Moreover, it will take some time for authorities to clear the waterway of mines and assure the major shipping companies, and their insurers, of its safety.
As a result, while analysts have trimmed their forecasts for oil prices towards the end of the year, they still remain well above the levels seen before the war. Morgan Stanley now sees Brent crude averaging $90 per barrel in the third quarter, down from its previous estimate of $100. The firm’s Q4 price forecast remains unchanged at $80 per barrel. At the same time, Goldman Sachs has also cut its oil price forecast from $90 to $80 per barrel for the fourth quarter of 2026.
With that said, here are the Best American Oil Stocks to Buy in 2026.
Our Methodology
To collect data for this article, we referred to several stock screeners to find the major companies operating in the oil and gas sector. We then ranked these stocks by the number of hedge funds invested in them at the end of Q1 2026, as per the Insider Monkey database. We limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment. The following are the Best American Oil Stocks to Buy According to Hedge Funds.
Why are we interested in the stocks that hedge funds pile into? 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. Insider Monkey’s quarterly newsletter strategy selects 14 small-cap and large-cap stocks every quarter and has returned 599.2% since May 2014, beating its benchmark by 372 percentage points (see more details here).
12. Cactus, Inc. (NYSE:WHD)
Number of Hedge Fund Holders: 26
Cactus, Inc. (NYSE:WHD) designs, manufactures, sells, and rents engineered pressure control and spoolable pipe technologies in the United States, Australia, Canada, the Middle East, and internationally.
On June 6, Stifel upped its price target on Cactus, Inc. from $66 to $68 and maintained its ‘Buy’ rating on the shares. The target boost implies an upside of almost 20% from the current price level.
Stifel increased its 2026-27 forecasts following Cactus’ updated Q2 guidance, citing higher confidence in both the company’s pressure control and spoolable technologies segments.
Cactus acquired a 65% stake in Baker Hughes’ Surface Pressure Control business for $365 million in January 2026. The company recently increased its projected synergy targets for the acquisition by 50% from an annualized amount of $10 million to $15 million. However, it does not expect to see significant supply chain-related savings before the second half of next year.
Cactus’ Pressure Control segment remained resilient despite the Middle East conflict, and is expected to deliver adjusted EBITDA margins of 22% to 24% range in the second quarter.
11. PBF Energy Inc. (NYSE:PBF)
Number of Hedge Fund Holders: 47
PBF Energy Inc. (NYSE:PBF) engages in the refining and supplying of petroleum products. It operates through two segments, Refining and Logistics.
On June 12, Morgan Stanley analyst Joe Laetsch raised the firm’s price target on PBF Energy Inc. from $34 to $38, but maintained its ‘Underweight’ rating on the shares.
The move comes after Morgan Stanley revised its refiner price recommendations and updated its estimates for the latest strip prices through the next year. The firm noted that while refining margins have pulled back from their peak earlier in mid-May, they still remain high compared to their pre-war levels.
The analyst firm believes that even if the waterway of Hormuz remains reopened, crack spreads are likely to remain supported by tight fuel inventories and stable demand trends.
After suffering a massive fire in 2026, PBF Energy Inc.’s Martinez refinery has now returned to full capacity. The 157,000 bpd dual-coking facility has now positioned the company to enter a cash-harvesting phase after an extended period of elevated maintenance spending.
10. Patterson-UTI Energy, Inc. (NASDAQ:PTEN)
Number of Hedge Fund Holders: 51
Patterson-UTI Energy, Inc. (NASDAQ:PTEN) is a leading provider of drilling and completion services to oil and natural gas exploration and production companies in the United States and other select countries.
On June 16, Stifel analyst Stephen Gengaro lifted the firm’s price target on Patterson-UTI Energy, Inc. from $14 to $15, while maintaining a ‘Buy’ rating on the shares. The revised target indicates an upside potential of over 45% from the current share price.
Stifel increased its estimates for 2026-27 after Patterson-UTI recently improved its guidance for Q2 EBITDA, supported in part by higher hydraulic fracturing pricing and solid performance in both drilling and completions.
Patterson-UTI Energy, Inc. recently raised its Q2 adjusted EBITDA guidance to $220 million, up from the $206 million previously. The company expects to exit the quarter with about 95 active rigs and to exceed 100 active rigs in the United States by the end of 2026.
With an impressive annual dividend yield of 3.88%, Patterson-UTI Energy, Inc. was also recently included in our list of the 10 High Yield Crude Oil Stocks to Buy Now.
9. Marathon Petroleum Corporation (NYSE:MPC)
Number of Hedge Fund Holders: 54
Marathon Petroleum Corporation (NYSE:MPC) is a leading integrated downstream and midstream energy company headquartered in Ohio. The company operates the largest refining system in the United States, boasting approximately 3 million barrels per day of crude oil capacity across 13 refineries.
On June 15, Wells Fargo analyst Sam Margolin lifted the firm’s price objective on Marathon Petroleum Corporation from $335 to $344, while reaffirming an ‘Overweight’ rating on the shares.
The target boost, which indicates an upside of almost 43% from the current levels, comes after the analyst firm visited Marathon’s Garyville refinery. Wells Fargo highlighted the plant’s flexibility and recent efficiency improvements, which are well-suited to the current market conditions as well as the refiner’s long-term goals.
As one of the largest refineries in the United States, Garyville has a crude oil refining capacity of 617,000 barrels per calendar day (bpcd). Marathon revealed in its last earnings call that approximately 25% of its 2026 refining value-enhancing capital is directed to Garyville. Notably, the company brought more than 30,000 bpd of incremental jet production capacity online at the refinery in March.
8. Solaris Energy Infrastructure, Inc. (NYSE:SEI)
Number of Hedge Fund Holders: 57
Next on our list of the Best American Oil Stocks is Solaris Energy Infrastructure, Inc. (NYSE:SEI). The company delivers proprietary power generation and distribution solutions, as well as logistics equipment and services, to clients in the data center, energy, commercial, and industrial sectors.
On June 12, Northland raised the firm’s price target on Solaris Energy Infrastructure, Inc. from $86 to $104, while reiterating its ‘Outperform’ rating on the shares. The revised price objective indicates an upside of 28% from the current levels.
Northland updated its model following the recent $1.3 billion debt offering by Solaris, along with an increase in contracted megawatt capacity tied to Hatchbo. The analyst firm also made slight adjustments to its deployment timing assumptions, which collectively contributed to the target boost.
Solaris Energy Infrastructure, Inc. recently raised its total adjusted EBITDA guidance by 10% to $83 million to $93 million for the second quarter. Moreover, it introduced a Q3 guidance of $80 million to $95 million, citing a shift from temporary to permanent power at the Stateline JV and deliveries of new equipment.
7. Devon Energy Corporation (NYSE:DVN)
Number of Hedge Fund Holders: 58
Devon Energy Corporation (NYSE:DVN) is a leading US oil and gas producer with a premier multi-basin portfolio touching the Anadarko Basin, Eagle Ford, Marcellus Shale, Powder River Basin, Williston Basin, and anchored by a world-class acreage position in the Delaware Basin.
On June 15, Raymond James trimmed its price target on Devon Energy Corporation from $72 to $66, but maintained its ‘Strong Buy’ rating on the shares.
The firm’s updated outlook was roughly in line with previous expectations. According to the analyst, investor focus has shifted towards Devon’s upcoming portfolio rationalization, which is viewed as the next major catalyst to help close the stock’s valuation gap compared to its peers.
Devon Energy Corporation completed its $58 billion merger with Coterra Energy earlier in May. The combined company is one of the largest independent oil and gas producers in the country, with a strong presence in the Permian basin in Texas and New Mexico.
Devon expects to capture $600 million in synergies in 2027. Moreover, the company remains confident in delivering $1 billion of annual pretax synergies on a run-rate basis by year-end 2027.
6. Kinder Morgan, Inc. (NYSE:KMI)
Number of Hedge Fund Holders: 62
Kinder Morgan, Inc. (NYSE:KMI) is one of the largest energy infrastructure companies in North America. The company is the largest independent transporter of petroleum products in the United States, transporting approximately 2.4 million barrels per day.
On June 12, Barclays reaffirmed its ‘Buy’ rating on Kinder Morgan, Inc. and assigned the stock a price objective of $34, reflecting an upside of over 8% from the current levels.
Kinder Morgan’s project backlog increased to $10.1 billion at the end of Q1 2026. During the quarter, the company put approximately $230 million of projects in service and added $375 million in new projects, including three data center deals. The projects will help grow the midstream operator’s cash flows and allow it to sustain its impressive dividend yield of 3.80%.
Kinder Morgan expects its net income attributable to the company to remain flat at $3.1 billion in FY 2026. However, the company expects its adjusted EPS to surge by 5% YoY to $1.36. Moreover, the energy infrastructure firm is targeting adjusted EBITDA of $8.6 billion for the year.
5. Phillips 66 (NYSE:PSX)
Number of Hedge Fund Holders: 64
Phillips 66 (NYSE:PSX) is a diversified and integrated downstream energy provider that manufactures, transports, and markets products.
On June 12, Morgan Stanley analyst Joe Laetsch lifted the firm’s price target on Phillips 66 (NYSE:PSX) from $180 to $196, while keeping an ‘Overweight’ rating on the shares. The target boost implies an upside of over 17% from the current share price.
Morgan Stanley noted that although refining margins have declined from their peak last month, they still remain high compared to pre-war levels. The analyst firm revised its refinery sector price targets and earnings forecasts to reflect the latest strip prices through 2027. The firm added that even if the Strait of Hormuz remains reopened, refining margins are likely to stay supported by tight fuel inventories and stable demand fundamentals.
Phillips 66 (NYSE:PSX) delivered a surprise profit in Q1, driven by a sharp surge in refining margins and higher capacity utilization, which helped the company offset the impact of volatile commodity prices. US refining margins, measured by the 3-2-1 crack spread, rose by approximately 73% YoY on average during the first quarter.
4. SLB N.V. (NYSE:SLB)
Number of Hedge Fund Holders: 74
SLB N.V. (NYSE:SLB) engages in the provision of technology for the energy industry worldwide.
SLB N.V. announced on June 10 that it had signed a long-term contract with Venezuela’s state oil company, PDVSA, to support the revitalization and modernization of the country’s oil and gas sector. The MoU covers cooperation across exploration, field development, production, digital enablement, and workforce training and development, as Caracas looks to rebuild output from the largest oil reserves in the world.
Venezuela’s oil sector grabbed global attention after the ouster of Nicolás Maduro earlier this year, with President Trump pushing American oil majors to invest and revive the country’s dilapidated energy infrastructure.
A key focus of the partnership is the digital transformation of the South American country’s oil and gas sector, and SLB and PDVSA will use connected data, predictive models, and AI-driven workflows to improve efficiency and fast-track decision-making.
Olivier Le Peuch, CEO of SLB N.V., stated:
“Venezuela’s oil and gas sector has substantial resource potential, and realizing that potential will require technology, digital integration and long-term talent development. For nearly a century, SLB people in Venezuela have stayed the course — working alongside the country’s energy sector through every cycle, bringing expertise, technology and a deep commitment to local capability. This MoU builds on that continuity and sets out a path with PDVSA to strengthen operational excellence and develop the skills that will sustain performance for years to come.”
3. ConocoPhillips (NYSE:COP)
Number of Hedge Fund Holders: 74
ConocoPhillips (NYSE:COP) is one of the world’s largest independent E&P companies based on oil and natural gas production and proved reserves.
It was reported on June 16 that ConocoPhillips has signed a contract with the Syrian Petroleum Company to revive the country’s gas production, making it the first American energy major to sign a deal with the new Syrian government. Along with Novaterra Energy, ConocoPhillips will develop existing gas fields and explore for new reserves in the country.
According to estimates by Wood Mackenzie earlier this year, Syria holds discovered oil and gas resources of at least 1.3 billion barrels of oil equivalent, with large areas of the country still underexplored. Moreover, its offshore sector has never been tapped, with no exploration wells drilled to date.
The 14-year civil war has ravaged Syria’s energy infrastructure and the country’s domestic natural gas production is estimated to have declined to 3 billion cubic metres in 2023 from 8.7 bcm in 2011. The Syrian government expected the deal to boost the country’s gas output by 4 to 5 million cubic metres per day within a year.
Ryan Lance, Chairman and CEO of ConocoPhillips, commented:
“We were in the country a number of decades ago, and this represents the re-entry of our company back into Syria in partnership with NovaTerra. We hope to grow the gas production in the country, and I hope that that expands beyond that to something even more significant for our company and more significant for the country of Syria.”
2. Exxon Mobil Corporation (NYSE:XOM)
Number of Hedge Fund Holders: 94
Exxon Mobil Corporation (NYSE:XOM) is one of the largest integrated fuels, lubricants, and chemical companies in the world.
On June 16, BofA upgraded Exxon Mobil Corporation from ‘Neutral’ to ‘Buy’ and assigned the stock a price objective of $154, implying an upside of almost 12% from the current levels.
BofA noted that Exxon is currently trading lower than when the US-Iran war began, despite benefiting from the higher energy prices linked to the conflict. The analyst firm noted that even if the peace deal does not hold and oil prices move back up, XOM shares are likely to rise, making it a free call option.
Exxon Mobil Corporation also remains focused on expansion and is currently exploring potential acquisition targets to bolster its position in the growing LNG and Asian markets. According to recent reports, the oil and gas behemoth has been holding early-stage discussions internally, and Australia’s Woodside Energy has emerged as one of the targets currently being evaluated
Exxon Mobil Corporation was also recently included in our list of the 14 Best S&P 500 Stocks to Buy Now According to Analysts.
1. Chevron Corporation (NYSE:CVX)
Number of Hedge Fund Holders: 103
Topping our list of the Best American Oil Stocks is Chevron Corporation (NYSE:CVX). The company manufactures and sells a range of high-quality refined products, including gasoline, diesel, marine and aviation fuels, premium base oil, finished lubricants, and fuel oil additives.
It was reported on June 16 that Chevron Corporation has expanded its offshore exploration footprint in the Mediterranean Sea after agreeing to acquire a majority stake in Block 10 from Greek energy company HELLENiQ ENERGY. Under the agreement, the American energy major will take a 70% participating interest in the block, while HELLENiQ will retain the remaining 30%.
The addition of Block 10 marks Chevron’s fifth concurrent offshore venture alongside HELLENiQ ENERGY in the country. The offshore concession is currently in its second exploration phase, where both 2D and 3D seismic studies have already been completed. The companies will now focus on further technical assessments and the identification of potential drilling locations as they evaluate the hydrocarbon potential of the area.
Andrew Deighan, Chevron Director of Exploration for the Middle East and North Africa, stated:
“This is another key milestone for Chevron as we continue to build momentum in the Mediterranean region, an area where we are looking to further expand and strengthen our global exploration portfolio. We are looking forward to evaluating the hydrocarbon potential of Block 10, which is in an exciting frontier area.”
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