Are These The Best Oil Stocks To Invest In This Month?
Even with the stock market being closed on Independence Day, investors would likely continue to survey oil stocks. After all, the industry continues to receive plenty of attention as oil prices remain high. As most would know, this would be due to the ongoing conflict in Europe between Russia and Ukraine. The likes of which have and continue to see world leaders issue sanctions on Russia. Accordingly, Russia is retaliating by ramping up its crude oil output reductions as well.
Because of the current situation in Eastern Europe, JPMorgan (NYSE: JPM) analyst Natasha Kaneva believes oil prices could soar further. According to Kaneva, Russia can withstand a daily crude production cut of 5 million barrels. Should this be the case, the analyst sees crude prices soaring to a “stratospheric” $380 per barrel. In Kaneva’s words, “It is likely that the government could retaliate by cutting output as a way to inflict pain on the West. The tightness of the global oil market is on Russia’s side.”
Overall, with further potential upside for oil prices, oil stocks would be coming into focus among investors. Also, some of the biggest players in the industry continue to press forward as well. Take ConocoPhillips (NYSE: COP) and BP (NYSE: BP) for example. On one hand, ConocoPhillips just announced a minor gas discovery in Norway last week, opening up additional gas exploration options. On the other hand, BP, as of last month, is currently working on one of the largest renewables and green hydrogen hubs worldwide. Safe to say, the industry appears to be kicking into high gear even as energy supplies dwindle. With all this in mind, here are three more oil stocks to note in the stock market this week.
3 Oil Stocks To Buy [Or Sell] Now
Exxon Mobil Corporation
To begin with, we will be taking a look at the Exxon Mobil Corporation. In essence, Exxon is a leading name in the oil and gas industry. Through its multinational operations, the company boasts a massive petrochemical portfolio. Among Exxon’s core operating segments are its Upstream, Product Solutions, and Low Carbon Solutions arms. Through all these segments, the company has and continues to produce a vast array of products. This ranges from conventional energy, chemicals, and lubricants to low-emission tech.
Notably, a recent SEC filing could be putting the company’s stock in the spotlight this week. Getting into it, Exxon is currently expecting its second fiscal quarter operating profit to increase by about $7.4 billion sequentially. Should this be the case, it would represent a record quarterly profit for the company. Seeing as Exxon is also set to report its current quarterly figures next month, this could result in investors eyeing XOM stock.
Providing additional context to all this is the company via a statement. Exxon notes, “High energy prices are largely a result of underinvestment by many in the energy industry over the last several years and especially during the pandemic.” As it stands, the current consensus figure on Wall Street for Exxon’s upcoming earnings per share is $2.99. This would represent a sizable 171% increase from the same quarter last year. After considering all this, would XOM stock be a top buy in your book?
Chevron is another energy firm to consider in the stock market now. For the most part, the company specializes in producing a wide range of offerings. This ranges from the production of crude oil and natural gas to the manufacturing of transportation fuels and petrochemicals. Aside from that, Chevron also develops additives alongside industry-relevant tech solutions. With operations in over 180 countries worldwide, Chevron is no newcomer to the industry.
Despite its notable operations, Chevron does not seem to be slowing down anytime soon. Just last month, the company made two significant moves on the operational side. For starters, the company currently owns the Renewable Energy Group. This follows the completion of the acquisition on June 13. Speaking on this is the executive VP of Downstream & Chemicals, Mark Nelson. He states, “Chevron now offers our customers an expanded suite of cost-effective, lower carbon solutions that utilize today’s fleets and infrastructure.” Accordingly, Nelson notes that this will continue to bolster Chevron’s “leading renewable fuels” portfolio.
Additionally, about a week after, Chevron also initiated a move into the upcoming U.S. liquefied natural gas (LNG) export market. This is evident from the two agreements it designed to boost sales of its shale gas across global markets. In detail, the company currently has an agreement with both Cheniere Energy (NYSE: LNG) and Venture Global LNG for a combined total of 4 million tonnes of LNG per annum. As Chevron works to expand into alternative fuel markets, will you be keeping an eye on CVX stock?
Last but not least, we have Occidental Petroleum. In brief, Occidental, like our two previous entries, focuses on making and marketing energy and related essential products. Over the past century, the company has and continues to develop its extensive assets, infrastructure, and tech; catering to the world’s energy demands. According to Occidental, the company has operations across the U.S., Middle East, Africa, and Latin America.
More importantly, many investors today would know of OXY stock thanks to Warren Buffett’s Berkshire Hathaway (NYSE: BRK.A). This would be the case as Berkshire continues to build its stake in Occidental. In fact, a recent filing with the SEC notes that Berkshire made such a move late last week. According to the Berkshire filing, it added 9.9 million shares of OXY stock to its portfolio. This would add up to a whopping 163.4 million shares, worth about $9.9 billion. As a result, Berkshire now has a 17.4% stake in Occidental. Based on data from Refinitiv, this would make its stake about 60% larger than Vanguard, the second-largest shareholder in Occidental.
At the same time, Occidental remains hard at work building its business. Just last week, the company landed a carbon capture and sequestration project in Louisiana. This is through a collaboration with Manulife Investment Management via its low carbon ventures subsidiary 1PointFive. In turn, 1PointFive now has access to “subsurface pore space and surface rights to develop and operate a carbon sequestration hub, with access to permanently store industrial carbon emissions.” All of which would benefit 1PointFive’s Carbon Capture, Utilization, and Sequestration platform. As such, could OXY stock be a top oil stock to invest in for you?
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.