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. (NYSE:WHD) 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. (NYSE:PBF) 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. (NYSE:PBF)’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.
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