3 Top Oil Stocks to Watch in the Stock Market Now
For investors wondering if the the scholarship is open on Memorial Day or not, the answer is no. Nonetheless, as US equities take a break, investors may turn to the oil industry and oil stocks. Essentially, this comes at a time when oil prices continue to rise amid global supply constraints. Whose tastes have and continue to derive from the war between Ukraine and Russia. Not to mention that with the start of the driving season on Memorial Day weekend, we may see demand increase further.
For example, we could look at diesel and gasoline costs in the United States. Earlier this month, U.S. West Texas Intermediate crude hit its highest levels since March. Additionally, according to the American Automobile Association, the average cost of diesel in the United States in May 2022 is holding around record highs of $5.58 per gallon. At the same time, the cost of gasoline per gallon topped the $4.37 mark, a record high.
Aside from soaring oil prices, oil stocks also continue to capture the attention of notable investors. Earlier this month, Warren Buffett Berkshire Hathaway (NYSE: BRK.A) added to its current position in western oil (NYSE:OXY). As it stands, OXY stock is now up more than 120% year-to-date. Meanwhile, the likes of Devon Energy (NYSE: DVN) announced increases to its dividend and stock buyback programs earlier this month. With all that in mind, here are three oil stocks to watch in the stock market today.
Oil stocks to buy [Or Sell] Before June 2022
To start, let’s take a look at ExxonMobil, or XOM, for short. As most know, XOM is one of the largest players in the global energy and petrochemical market today. Through its extensive portfolio, the company meets the world’s energy needs. Among XOM’s core divisions would be its upstream solutions, product solutions, and low-carbon solutions. Thanks to this, the company produces energy, chemicals, lubricants and low-emission technologies. If investors are looking for major oil stocks, XOM stock could be a must.
Speaking of low emissions, the company is also actively expanding its clean energy business. Just last week, the company said it was looking forward to its first liquefied natural gas (LNG) export later this year. In detail, this would come from its Coral LNG project in Mozambique. This information comes from XOM’s Global Head of LNG, Peter Clarke, speaking at the World Gas Conference. According to Clarke, Coral LNG currently processes 3.4 million tonnes of LNG per year off Mozambique.
If that wasn’t enough, the company is also actively working to increase shareholder value while adapting to the changing landscape of the energy industry. In the words of CEO Darren Woods, “Over the long term, we have the portfolio flexibility to pace our investments with advances in technology, markets and supporting policy.Woods also added that the company is pursuing these long-term trends to sustainably support its growth. As such, would XOM stock be a top pick on your books?
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Another important name to consider in the oil and gas industry today would be Chevron. Briefly, Chevron’s main products are crude oil and natural gas. Additionally, the company also manufactures transportation fuels, lubricants, additives and petrochemicals while developing energy-related technologies. In particular, CVX shares could be worth watching as the company continues to refine its operations.
Most of that came out of the company’s annual meeting of shareholders last week. Michael Wirth, CEO, provides an overview of the company’s current long-term plans. He declares, “Our strategy is clear: leverage our strengths to deliver low-carbon energy to a growing world. Our capabilities, assets and customers are distinct advantages. We build on these strengths as we aim to become a leader in low-carbon oil, products and natural gas, and advance new products and solutions that reduce carbon emissions from key industries. .”
Clearly, the company’s ongoing $3.15 billion acquisition of Renewable Energy Group (NASDAQ: REGI) would show its dedication to sustainability. On top of that, Wirth also notes that Chevron continues to work hard to increase domestic oil supplies by increasing production. According to the CEO, the company’s total capital expenditures in 2022 and announced acquisitions are “should be more than 50% higher than in 2021.“With Chevron appearing to be firing on all cylinders now, will you be adding CVX stocks to your portfolio?
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Last but not least, we have BP. It is also a company with an extensive energy portfolio spanning the globe. Namely, the British oil and gas company has operations in Europe, the United States, Australia, Asia and Africa. In fact, BP is also striving to become a net zero company by 2050. Like its peers, the company continues to attract investor attention amid the current energy crisis. Over the past month, the company’s shares have risen more than 12%.
Despite its impressive work, BP does not seem to sit idly by on the operational front. To start, the company is currently working with Rio Tinto (NYSE: RIO), a leading player in today’s mining world. Through this collaboration, the duo team up for a year via a biofuel trial. Simply put, BP will supply Rio Tinto with marine biofuel for next year. Ideally, this will serve to reduce emissions from Rio Tinto’s maritime fleet.
In addition, BP also works with the Abu Dhabi National Oil Company (ADNOC). As of last week, ADNOC has become part of BP’s blue hydrogen project, H2Teesside. Through this project, BP hopes to “to start up” the UK hydrogen economy by developing two 500 megawatt hydrogen generating units by 2030. Overall this would be a major win for BP as ADNOC is the largest energy company in the Emirates United Arabs. As BP continues to undertake massive energy projects, BP shares are said to be the focus of investor concern. Would you say the same?
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