We just published a list of 8 Best Oil Tanks to Buy Now. In this section, we’ll look at where Occidental Petroleum Corporation (NYSE: OXY ) stands against some of the oil stocks to buy right now.
Oil companies, often called energy companies, represent the sectors of companies involved in the exploration and development of oil and gas, as well as those that specialize in the extraction of these resources. Additionally, companies that refine crude oil into usable products, such as gasoline and diesel, also fall under this category.
In an interview with Bloomberg on December 5, Amrita Sen, Founder and Director of Research at Energy Aspects, discussed the current state of the oil market and the upcoming OPEC+ meeting. Sen noted that OPEC+ members are not likely to increase production, given the traditional adjustment season in Q1 and Q2, which usually leads to crude stock building. Instead, he expects the group to slow down the plan to remove seasonal factors and reassess the market in the second half of the year.
Sen emphasized that the current state of global production is very low and that in the U. , as analysts and industry are looking forward to the horse 2025 and are revising their current records.
When asked about the risk of a major collapse in OPEC+ members, Sen said it is unlikely to happen as members are committed to maintaining stable prices, rather than engaging in a price war. He recalled the price war in April 2020, which led to a drop in prices, and said that OPEC ministers want to prevent a repeat of this situation. Although they want prices to go up, they also realize that if there is a crash and the market is not managed properly, prices can also go down.
READ ALSO: 10 Oil Stocks with the Biggest Upside Potential According to Analysts and 7 Best Emerging Markets Stocks to Buy Now.
Sen acknowledged that the recent start of transporting Canadian oil to international markets through the Trans Mountain pipeline represents a significant development in the industry and has given Canadian producers the benefit of increased access to international markets. Sen notes that China has a strong interest in Canadian heavy oil, mainly because of its consistent quality, which is well suited to the needs of today’s Chinese refineries. Sen also said that all the new refineries coming online in China, India, and other South Asian countries are designed to produce medium or heavy crude oil, and their demand is estimated to reach 800,000 barrels per day.
Sen said that refining in regions such as Europe, North America, and other OECD countries is expected to decline, with an estimated loss of one million barrels per day over the next year, including 400 barrels in Europe and another 400,000 in Europe. United States, due to environmental concerns. Looking ahead to 2025, Sen expects that the price of oil will average to the middle of 80 dollars for Brent, but there are risks set up due to the tightening of sanctions against Iran, Venezuela, and Russia under the Trump administration.
Energy plays an important role in the world’s economy, as it provides essential resources needed for the energy, transportation, and housing industries. The oil and gas industry continues to play an important role in meeting the world’s energy needs, even as the push for cleaner alternatives increases. With that in mind, let’s take a look at the 8 best essential oils to buy right now.
To create our list of the 8 best oil stocks to buy right now, we used Finviz and Yahoo stock screeners to find the 25 largest companies in the oil and gas sectors. We then used Insider Monkey’s Hedge Fund database to rank eight stocks based on the largest number of hedge fund holders, as of Q3 2024. The list is ordered in ascending order of rising hedge fund sentiment.
Why do we care about what hedge funds do? The reason is simple: our research has shown that we can outperform the market by following the best pictures of the best quality hedge funds. Our quarterly newsletter strategy selects 14 small-cap and large-cap stocks each quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more here)
Why is Occidental Petroleum Corporation (OXY) the Best Fuel Stock to Buy Now?
Oil derricks in the background and a few workers in the front, emphasizing the activities of the oil and gas production company.
Number of Hedge Fund Holders: 71
Occidental Petroleum Corporation (NYSE: OXY ) is a global energy company engaged in crude oil exploration, production, and marketing. The company maintains a significant presence in the US, the Middle East, and Latin America, serving as a key supplier of crude oil to refineries and industries.
Occidental Petroleum Corporation (NYSE: OXY ) is focusing on using its existing facilities in the Delaware basin acreage to develop secondary benches within existing wells using the technology. By doing this, the company aims to replace the stock at a lower cost. In addition, the company is reducing costs by improving infill and has been able to increase revenue through expansion and acquisitions. As a result, Occidental Petroleum Corporation (NYSE: OXY ) is replacing reserves while investing less in the current recession and lower prices.
Occidental Petroleum Corporation (NYSE: OXY ) plans to maintain a five-rig program within CrownRock assets until 2025, targeting mid-single-digit production growth. The company is also focused on maintaining flexibility in capital expenditures within its large US onshore portfolio in response to changes in commodity prices. With the addition of CrownRock assets and strong performance from new wells in the Permian Basin, Occidental Petroleum Corporation (NYSE: OXY ) expects to achieve a production rate of 1.45 million barrels of oil equivalent per day in Q4.
Overall, OXY second position on our list of the best oil stocks to buy right now. While we acknowledge the potential of OXY to grow, our confidence lies in the belief that AI stocks hold great promise of delivering high returns and doing so within a short period of time. If you are looking for an AI stock that is more promising than OXY but that trades less than 5 times its earnings, check out our report about cheap AI stock.
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Disclosure: None. This article was published on Insider Monkey.
