On February 6, Reuters reported that oil prices ended higher on Friday, recovering from earlier losses. This update comes as investors grow concerned that recent talks between the United States and Iran have not lowered the risk of a military conflict between the two nations.
According to the report by Reuters, Brent crude futures rose 50 cents, or 0.74%, to settle at $68.05 a barrel. US West Texas Intermediate crude gained 26 cents, or 0.41%, to close at $63.55 a barrel.
The US and Iran held discussions through Omani mediation in an effort to overcome major differences over Iran’s nuclear program. However, the talks failed to reassure markets. John Kilduff, partner at Again Capital, noted that the situation keeps shifting, improving at times and then worsening again, which creates ongoing uncertainty over Iran.
Market concerns are focused on the risk that any escalation of tension between the US and Iran could disrupt oil flows. Around one-fifth of global oil consumption passes through the Strait of Hormuz between Oman and Iran. The Strait is used by Saudi Arabia, the United Arab Emirates, Kuwait, and Iraq to export most of their crude oil. It is also used by fellow OPEC member Iran. If tensions in the region were to ease and the risk of conflict decline, oil prices could fall.
With this background in mind, let’s take a look at the 12 best oil and gas stocks to buy right now.
Our Methodology
To compile our list of the 12 best oil and gas stocks to buy right now, we used stock screeners from Finviz and Yahoo Finance to find the largest oil and gas companies. We sorted our results based on market capitalization and picked the 40 largest stocks. Next, we focused on the top 12 stocks that are 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 oil and gas stocks 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 Oil and Gas Stocks to Buy Right Now
12. Duke Energy Corporation (NYSE:DUK)
Number of Hedge Fund Holders: 62
Duke Energy Corporation (NYSE:DUK) is one of the best oil and gas stocks to buy right now. On January 30, BTIG reduced its price target on Duke Energy Corporation (NYSE:DUK) from $150 to $141 and kept its Buy rating on the stock.
This update comes as part of a broader research note where BTIG previewed 2025 results for utility companies. The research firm noted that upcoming earnings calls could be more positive, even when investor sentiment has remained cautious.
Earlier, on January 23, RBC Capital cut its price target on Duke Energy Corporation (NYSE:DUK) from $143 to $140 and maintained a Sector Perform rating. The research firm noted that many utility companies have provided early or off-cycle updates to capital plans, which has been the trend over the past 18 months. This led RBC Capital to revise its sector models.
On January 20, Wells Fargo also reduced its price target on Duke Energy Corporation (NYSE:DUK) from $126 to $115 and kept its Equal Weight rating. Wells Fargo updated its valuation approach and rolled forward its outlook by one year to 2028. The research firm believes that Duke Energy Corporation (NYSE:DUK) is currently trading at a premium compared with its previous discounted valuation.
Duke Energy Corporation (NYSE:DUK) is an American electric power and natural gas holding company. It serves millions of customers in the US with its electric utilities and natural gas utilities.
11. Occidental Petroleum Corporation (NYSE:OXY)
Number of Hedge Fund Holders: 62
Occidental Petroleum Corporation (NYSE:OXY) is one of the best oil and gas stocks to buy right now. On January 28, Piper Sandler slightly increased its price target on Occidental Petroleum Corporation (NYSE:OXY) from $46 to $47 and kept its Neutral rating on the stock.
The research firm pointed out that it expects strong Q4 results from gas companies. However, Piper Sandler noted that weaker oil and natural gas liquids prices, along with WAHA pricing, were a challenge for oil stocks. Looking ahead to fiscal 2026, the firm expects oil companies to focus on maintenance programs, while a number of gas-producing companies are focusing on growth to meet rising LNG demand.
Earlier, on January 27, BofA also raised its price target on Occidental Petroleum Corporation (NYSE:OXY) from $44 to $45 while maintaining a Neutral rating on the stock. This increase in price target comes as the firm updates its price targets across integrated, refining, and midstream stocks under its coverage.
BofA pointed out that the removal of Maduro in Venezuela and the unrest in Iran have helped push front-month crude prices higher. The firm added that both geopolitical developments and company-specific factors could act as catalysts going forward.
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.
