Which oil stocks to buy? This is a question that you should absolutely be asking yourself right now. Particularly with oil trading below $90. Because it’s not going to stay at these levels much longer.
Last week, we saw oil prices sell off a bit after Israel refrained from launching a counterattack against Iran. Some analysts and lawmakers applauded that decision. Then, of course, Isreal did respond, proving once again that the Middle East will always be a powder keg. The only difference now is that OPEC no longer holds all the cards when it comes to oil production.
These days, that award goes to the U.S. And America is at no risk of losing its oil dominance anytime soon. In fact, we got word last week from the Energy Information Administration (EIA), that oil output from the top shale-producing regions in the U.S. will increase next month. This will be the highest level of output since December, 2023.
Production will rise by more than 16,000 barrels per day. This is primarily due to improved well productivity following a deep freeze a few months ago that shut down production in some regions. Our analysts have traveled the world over, dedicated to finding the best and most profitable investments in the global energy markets. All you have to do to join our Energy and Capital investment community is sign up for the daily newsletter below.
Of course, a 16,000 bpd increase isn’t much in the grand scheme of things. Considering the nearly 10 million barrels per day the U.S. produces, this barely registers as an accounting error. It should also be noted that despite a 16,000 bpd increase, overall, U.S. shale oil production growth is beginning to slow.
So going forward, we’re looking at continued unrest in the Middle East, continued attacks on Russian oil assets, and U.S. shale production beginning to slow down. Perhaps not a great scenario for folks still driving internal combustion vehicles, but one hell of an opportunity for investors.
Oil Stocks to Buy Now
One of my favorite oil stocks to buy right now is Civitas Resources (NYSE: CIVI). Its operations are focused along the Denver-Julesburg, Delaware and Midland Basins. These are three of the highest producing, lowest breakeven basins in the United States.
The company’s balance sheet is stellar, and I’m particularly fond of the fact that Civitas is on track to become Colorado’s first carbon-neutral oil and gas producer by the end of this year. This is of particular interest to me, as I’ve always been an unapologetic treehugger. But don’t think for a second that the company’s environmental efforts have inhibited its ability to deliver for shareholders.
Over the past three years, Civitas has delivered gains in excess of 115%. And that doesn’t include its very attractive 8% dividend.
By this time next year, Civitas should be trading for at least $90 a share. And that’s figuring conservatively. Of course, as much as I love Civitas, there are a few other oil stocks that are actually even better for your portfolio — if you get in now.
According to our in-house oil & gas guru, Keith Kohl, oil is absolutely heading to $100 a barrel. In his most recent investment note, Keith wrote …
“Due to the convergence of three powerful economic triggers, I believe we’re on the cusp of a multi-year bull market in oil.
Not only will crude oil prices soar, but my research indicates they will not come back down for years.
Most Americans will be blindsided as prices for fuel and everyday goods reach unprecedented heights. But for smart investors who know what to do, this is a rare opportunity. That’s why I’ve recorded this urgent briefing today.”
You can listen to that briefing here.
Or if you just want to get the names of the three oil stocks Keith is most bullish on right now — given recent events in the Middle East and the production slow-down in the U.S., I would encourage you to read his latest on Venezuela sanctions.
Bottom line: oil is heading back to $100 a barrel. It’s going to happen sooner than most people realize. So unless you hate money, I strongly suggest you buy these three oil stocks now.
To a new way of life and a new generation of wealth… Jeff Siegel
@JeffSiegel on Twitter
Check us out on YouTube!Jeff is the founder and managing editor of Green Chip Stocks. For more on Jeff, go to his editor’s page.
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