3 Top Oil Stocks To Watch In The Stock Market Now
For investors wondering if the stock market is open on Memorial Day or not, the answer is a no. Nonetheless, while U.S. equities take a break, investors could be eyeing the oil industry and oil stocks. For the most part, this comes at a time when oil prices continue to rise amidst global supply constraints. The likes of which have and continue to stem from the war between Ukraine and Russia. Not to mention, with the driving season kicking off over the Memorial Day weekend, we could see demand rise further.
For instance, we could look at the costs for diesel and gasoline across the U.S. Earlier this month, U.S. West Texas Intermediate crude hit its highest levels since March. Moreover, according to the American Automobile Association, the average cost of diesel in the U.S. throughout May 2022 is holding around record levels of $5.58 per gallon. At the same time, the per-gallon cost of gasoline exceeded the $4.37 point, a record high.
Soaring oil prices aside, oil stocks continue to receive attention from notable investors as well. Just earlier this month, Warren Buffett’s Berkshire Hathaway (NYSE: BRK.A) added to its current position in Occidental Petroleum (NYSE: OXY). As it stands, OXY stock is now up by over 120% year-to-date. Meanwhile, the likes of Devon Energy (NYSE: DVN) announced increases to both its dividend and share repurchase programs earlier this month. With all this in mind, here are three oil stocks to watch in the stock market today.
Oil Stocks To Buy [Or Sell] Ahead Of June 2022
To begin with, we will be taking a look at ExxonMobil, or XOM, for short. As most would know, XOM is among the largest players in the global energy and petrochemical market today. Through its vast portfolio, the company serves the energy needs of the world. Among XOM’s core divisions would be its Upstream, Product Solutions, and Low Carbon Solutions. Through this, the company produces energy, chemicals, lubricants, and low-emission tech. Should investors be looking for the top oil stocks around, XOM stock could be a go-to.
Speaking of low emissions, the company is also actively expanding its clean energy operations as well. Just last week, the company noted that it is looking forward to its first export of liquefied natural gas (LNG) later this year. In detail, this would be from its Coral LNG project in Mozambique. This information comes from XOM’s head of global LNG, Peter Clarke, speaking at the World Gas Conference. According to Clarke, Coral LNG currently processes 3.4 million tons of LNG per year off the coast of Mozambique.
If that wasn’t enough, the company is also actively working to grow shareholder value while adapting to the changing energy industry landscape. In the words of CEO Darren Woods, “Long-term, we have the portfolio flexibility necessary to pace our investments consistent with advancements in technology, markets, and supportive policy.” Woods also added that the company is pursuing these long-term trends to sustainably bolster its growth. As such, would XOM stock be a top pick in your books?
Another leading name to consider in the oil and gas industry today would be Chevron. In brief, Chevron’s key products are crude oil and natural gas. Additionally, the company also manufactures transportation fuels, lubricants, additives, and petrochemicals while developing energy-related tech. Notably, CVX stock could be worth keeping an eye on as the company continues to refine its operations.
For the most part, this is apparent from the company’s annual stockholder meeting last week. Providing an overview of the company’s current long-term plans is CEO Michael Wirth. He states, “Our strategy is clear: leverage our strengths to deliver lower carbon intensity energy to a growing world. Our capabilities, assets, and customers are distinct advantages. We’re building on these strengths as we aim to lead in lower carbon intensity oil, products, and natural gas, and to advance new products and solutions that reduce the carbon emissions of major industries.”
Evidently, 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 remains hard at work upping domestic oil supplies by increasing production. According to the CEO, the company’s total 2022 capital spending and announced acquisitions are “expected to be more than 50 percent higher than 2021.” With Chevron seemingly firing on all cylinders now, will you be adding CVX stock to your portfolio?
Last but not least, we have BP. This too is a company that has an expansive energy portfolio spanning the globe. Namely, the British oil and gas firm boasts operations in Europe, the U.S., Australia, Asia, and Africa. In fact, BP is also working towards becoming a net-zero company by 2050. Like its peers, the company continues to draw investor attention amidst the current energy crisis. Over the past month, the company’s shares are up by over 12%.
Despite its impressive work, BP does not seem to be sitting idly by on the operational front. For starters, the company is currently working with Rio Tinto (NYSE: RIO), a prominent player in the mining world today. Through this collaboration, the duo are teaming up for one year via a biofuel trial. Simply put, BP will be supplying Rio Tinto with marine biofuel for the next year. Ideally, this will serve to reduce the emissions from Rio Tinto’s marine fleet.
Furthermore, BP is also working with the Abu Dhabi National Oil Company (ADNOC) now as well. As of last week, ADNOC is now part of BP’s blue hydrogen project, H2Teesside. Through this project, BP expects to “kickstart” the UK’s hydrogen economy by developing two 500-Megawatt hydrogen production units by 2030. All in all, this would be a major win for BP as ADNOC is the UAE’s largest energy company. As BP continues to take on massive energy projects, BP stock would be in focus among investors. Would you say the same?