In this article, we’ll look at the 8 Best Oil & Gas Refinery Stocks to Buy Now.
Oil and gas stocks are on the move as a flare-up of tensions between the US and Iran threatens to disrupt shipping in the Strait of Hormuz. Heightened military activity in the key oil-producing region is the catalyst pushing oil and gas prices higher.
“Markets can tolerate headlines but won’t ignore lost supply,” said Haris Khurshid, chief investment officer at Karobaar Capital LP. “If exports out of Iran are hit or there’s credible interference in the Strait of Hormuz — highly likely if things go south — that’s when crude reprices fast.”
Brent futures have already powered through the $70-a-barrel level, heightening sentiment around oil and gas refinery stocks. The rally has come amid concerns that Saudi Arabia, Iraq, and Kuwait would struggle to get their oil supplies through Hormuz, therefore affecting global supplies. Likewise, military action in Iran would affect oil supplies from Iran, as the country accounts for about 3% of global production.
Oil prices have also remained resilient for the better part of the year despite broad expectations of a global glut. However, Goldman Sachs has raised its Brent and West Texas Intermediate (WTI) crude forecasts for the fourth quarter of 2026 by $6 each to $60 and $56, respectively. The bank is maintaining its 2026 surplus forecast of 2.3 million barrels per day (bpd).
Meanwhile, analysts at Barclays have warned that oil market fundamentals are at odds with the super glut narrative.
“A potential 1 mb/d supply disruption–which corresponds to half of Iran’s crude exports–for 12 months would boost the fair value of oil by $8,” Barclays said.
Tensions in the Middle East are not the only factor supporting oil and gas refinery stocks. Russian oil producers reduced drilling activity in 2025 to the lowest level in three years. The reduction has dimmed the outlook for output growth, also supporting the price outlook. Production out of Russia has already fallen for two consecutive months.
“Russian production is quite similar to the US shale, with output growth and decline looking like an echo of drilling amount several months prior,” said Sergey Vakulenko.
Amid skyrocketing tensions in the Middle East and the unending war between Russia and Ukraine, let’s take a look at some of the Best Oil & Gas Refinery Stocks to buy.
Our Methodology
For this article, we used the VanEck Oil Refiners ETF (CRAK) and the Yahoo screener to identify all companies in the Oil & Gas refining sector that are listed on the NASDAQ and NYSE. From that group, we selected stocks with positive upside potential based on Wall Street analyst ratings as of February 20, 2026. Finally, we ranked these stocks in ascending order by the number of hedge fund holders, using data from Insider Monkey’s Q4 2025 database.
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. 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).
Best Oil & Gas Refinery Stocks to Buy
8. Delek US Holdings Inc (NYSE:DK)
Stock Upside Potential: 20.63%
Number of Hedge Fund Holders: 33
Delek US Holdings Inc (NYSE:DK) is among the best oil & gas refinery stocks to buy now. On February 18, Delek US Holdings Inc (NYSE:DK) announced that it plans to pay a quarterly dividend of $0.255 per share on March 9. This announcement came as the company prepares to release its Q4 2025 results on February 27.
In its Q3 2025 report, which was released in November, Delek posted adjusted EPS of $7.13. Wall Street was expecting it to report a loss per share of $0.09. Revenue of $2.89 billion rose from $3.04 billion in the same quarter in 2024 and surpassed $2.7 billion that was expected. The quarter was buoyed by $280.8 million in benefits tied to Small Refinery Exemptions granted by the U.S. Environmental Protection Agency.
On January 27, Morgan Stanley restated its Equal Weight rating on Delek stock but lowered the price target to $38 from $40. This action was driven by valuation reassessment as the firm pointed out that refining stocks had soared following the events in Venezuela. That said, Morgan Stanley remains constructive on the long-term outlook of refining companies.
Delek US Holdings Inc (NYSE:DK), based in Brentwood, TN, is a diversified energy company. Its specialties are petroleum refining, with operations strategically located in places like Krotz Springs, Louisiana, Tyler and Big Spring, Texas, and El Dorado, Arkansas. The company also runs renewable fuels, asphalt, and logistics businesses.
7. CVR Energy, Inc. (NYSE:CVI)
Stock Upside Potential: 17.61%
Number of Hedge Fund Holders: 32
CVR Energy, Inc. (NYSE:CVI) is among the best oil & gas refinery stocks to buy now. CVR Energy, Inc. (NYSE:CVI) reported its Q4 2025 results on February 18. It posted a loss per share of $0.80, which missed the consensus forecast of a loss per share of $0.59. Revenue of $1.81 billion surpassed the consensus expectation of $1.76 billion.
During the quarter, the company completed the process of reverting its Wynnewood facility from renewable diesel back to hydrocarbon processing. While issuing its Q4 preliminary results on January 26, CVR Energy had warned that the facility reversion would push it to a loss because of accelerated depreciation.
“We remain optimistic about the intermediate term prospects for refining, with expected steady increases in global demand for refined products and fewer supply additions compared to the past few years,” commented Mark Pytosh, CEO of CVR Energy.
Regarding cash, the company finished 2025 with $511 million in cash and cash equivalents. CVR Energy plans to pay a quarterly dividend of $0.37 per common unit on March 9.
On January 29, CVR Energy priced $1 billion in senior unsecured notes. It said the offering consisted of $600 million notes maturing in 2031 and $400 million notes maturing in 2034. It plans to use the proceeds from the offering to redeem some existing notes.
CVR Energy, Inc. (NYSE:CVI) is headquartered in Sugar Land, Texas. It runs a diversified business but primarily engages in petroleum refining and marketing through its CVR Refining unit. Additionally, the company engages in nitrogen fertilizer production through CVR Partners, LP., where it owns a stake of 37%.
