5 Best American Oil Stocks to Buy Now

In this article, we will take a look at the 5 Best American Oil Stocks to Buy Now. For deeper discussion and analysis, please refer to the 12 Best American Oil Stocks to Buy Now.

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.