S&P 500   3,768.25
DOW   30,814.26
QQQ   311.86
S&P 500   3,768.25
DOW   30,814.26
QQQ   311.86
S&P 500   3,768.25
DOW   30,814.26
QQQ   311.86
S&P 500   3,768.25
DOW   30,814.26
QQQ   311.86
Log in

Oil Stocks

An oil stock is publicly-traded company involved in the exploration, drilling and refinement. What is an oil stock?

CompanyPE RatioMarket CapCurrent PricePrice ChangeVolumeAverage VolumeIndicator(s)
Exxon Mobil logo
XOM
Exxon Mobil
28.51$202.49 billion$47.89-4.8%42.41 million34.85 millionAnalyst Report
Heavy News Reporting
Chevron logo
CVX
Chevron
N/A$171.96 billion$92.09-3.6%10.24 million11.25 millionAnalyst Report
Heavy News Reporting
(RDS.A) logo
RDS.A
(RDS.A)
N/A$156.89 billion$40.19flat4.97 million7.10 millionAnalyst Report
(RDS.B) logo
RDS.B
(RDS.B)
N/A$148.93 billion$38.15flat2.46 million3.72 millionDecrease in Short Interest
Total logo
TOT
Total
N/A$117.35 billion$44.23-3.7%2.50 million2.55 millionAnalyst Report
Increase in Short Interest
ServiceNow logo
NOW
ServiceNow
145.54$101.79 billion$513.76-0.1%1.08 million1.49 millionAnalyst Upgrade
Analyst Revision
Heavy News Reporting
The Estée Lauder Companies logo
EL
The Estée Lauder Companies
151.91$92.81 billion$249.13-0.4%2.12 million1.30 millionDecrease in Short Interest
Heavy News Reporting
BP logo
BP
BP
N/A$81.91 billion$24.26-4.8%24.06 million18.38 millionAnalyst Report
Increase in Short Interest
L'Air Liquide logo
AIQUY
L'Air Liquide
29.79$75.40 billion$31.87-2.2%120,700124,010Analyst Upgrade
Increase in Short Interest
Public Joint Stock Company Gazprom logo
OGZPY
Public Joint Stock Company Gazprom
N/A$72.09 billion$6.08-1.9%1.06 million709,070High Trading Volume
Petróleo Brasileiro S.A. - Petrobras logo
PBR
Petróleo Brasileiro S.A. - Petrobras
9.24$71.09 billion$10.90-5.5%35.73 million25.94 millionIncrease in Short Interest
Enbridge logo
ENB
Enbridge
49.66$70.07 billion$35.26-1.0%6.24 million6.13 millionAnalyst Report
Increase in Short Interest
PETROLEO BRASIL/S logo
PBR.A
PETROLEO BRASIL/S
5.80$69.20 billion$10.61flat7.83 million7.08 millionDecrease in Short Interest
Daikin Industries,Ltd. logo
DKILY
Daikin Industries,Ltd.
41.26$67.03 billion$22.28-3.7%124,60087,680Analyst Upgrade
Decrease in Short Interest
Equinor ASA logo
EQNR
Equinor ASA
N/A$64.00 billion$19.22-2.5%4.49 million6.19 millionAnalyst Report
Increase in Short Interest
Heavy News Reporting
ABB logo
ABB
ABB
11.20$63.64 billion$29.35-4.5%2.40 million2.66 millionAnalyst Report
Increase in Short Interest
Ecolab logo
ECL
Ecolab
N/A$61.93 billion$210.77-0.8%1.16 million958,440Analyst Upgrade
Increase in Short Interest
Analyst Revision
Heavy News Reporting
China Petroleum & Chemical logo
SNP
China Petroleum & Chemical
126.85$61.43 billion$50.74-0.9%257,200232,610Decrease in Short Interest
Heavy News Reporting
BHP Group logo
BBL
BHP Group
16.10$61.20 billion$57.64-4.8%1.20 million1.35 millionAnalyst Report
Heavy News Reporting
PetroChina logo
PTR
PetroChina
N/A$60.49 billion$33.05-2.7%139,800156,860Analyst Upgrade
Heavy News Reporting
Pjsc Lukoil logo
LUKOY
Pjsc Lukoil
33.44$54.18 billion$80.25-1.0%299,200140,030Decrease in Short Interest
Eaton logo
ETN
Eaton
36.23$49.99 billion$123.17-1.2%2.59 million2.35 millionAnalyst Report
Analyst Revision
Glencore logo
GLNCY
Glencore
23.52$49.90 billion$7.53-2.8%211,700328,590Analyst Upgrade
Decrease in Short Interest
Heavy News Reporting
Enterprise Products Partners logo
EPD
Enterprise Products Partners
11.14$49.64 billion$22.94-0.8%7.27 million9.59 millionHeavy News Reporting
Emerson Electric logo
EMR
Emerson Electric
25.54$49.39 billion$82.75-0.7%2.93 million2.47 millionAnalyst Upgrade
Heavy News Reporting
Waste Management logo
WM
Waste Management
30.35$48.48 billion$114.72+0.1%3.80 million1.78 millionHigh Trading Volume
ConocoPhillips logo
COP
ConocoPhillips
N/A$48.40 billion$45.12-5.7%30.00 million12.97 millionAnalyst Upgrade
Heavy News Reporting
A.P. Møller - Mærsk A/S logo
AMKBY
A.P. Møller - Mærsk A/S
31.61$48.12 billion$12.01-2.6%123,500139,630Analyst Upgrade
Decrease in Short Interest
Heavy News Reporting
CNOOC logo
CEO
CNOOC
5.23$45.99 billion$103.01+0.3%261,800662,860Analyst Downgrade
Increase in Short Interest
Heavy News Reporting
ITOCY
ITOCHU
10.38$45.28 billion$60.18-1.0%191,00043,380Decrease in Short Interest
Freeport-McMoRan logo
FCX
Freeport-McMoRan
N/A$44.40 billion$30.35-5.1%19.93 million26.04 millionAnalyst Report
Decrease in Short Interest
Analyst Revision
Heavy News Reporting
TE Connectivity logo
TEL
TE Connectivity
N/A$42.32 billion$127.95-1.7%1.48 million1.79 millionAnalyst Revision
Heavy News Reporting
TC Energy logo
TRP
TC Energy
13.10$41.75 billion$44.41+0.3%2.38 million2.44 millionAnalyst Downgrade
ENI logo
E
ENI
N/A$40.09 billion$21.27-3.9%574,300417,350Analyst Report
High Trading Volume
Decrease in Short Interest
Manulife Financial logo
MFC
Manulife Financial
9.66$37.21 billion$19.03-2.1%2.61 million2.83 millionDecrease in Short Interest
Heavy News Reporting
EOG Resources logo
EOG
EOG Resources
N/A$35.28 billion$59.19-4.9%4.93 million5.15 millionAnalyst Downgrade
Unusual Options Activity
Cummins logo
CMI
Cummins
22.38$35.11 billion$237.24-1.7%1.82 million1.22 millionAnalyst Report
High Trading Volume
Analyst Revision
Schlumberger logo
SLB
Schlumberger
N/A$34.68 billion$24.91-4.0%13.45 million14.36 millionUpcoming Earnings
Kinder Morgan logo
KMI
Kinder Morgan
309.80$34.66 billion$15.49-1.0%16.17 million19.51 millionUpcoming Earnings
Analyst Report
IHS Markit logo
INFO
IHS Markit
39.41$34.04 billion$85.51+1.9%4.33 million3.59 millionEarnings Announcement
Dividend Increase
Analyst Report
Decrease in Short Interest
Analyst Revision
O'Reilly Automotive logo
ORLY
O'Reilly Automotive
22.88$33.81 billion$466.69-1.0%1.26 million638,030
Sandvik logo
SDVKY
Sandvik
49.19$32.70 billion$26.07-0.7%42,50071,130Upcoming Earnings
Analyst Report
LyondellBasell Industries logo
LYB
LyondellBasell Industries
26.96$32.44 billion$94.91-4.0%2.27 million2.06 millionDecrease in Short Interest
TransDigm Group logo
TDG
TransDigm Group
48.11$31.84 billion$584.99-3.5%212,700208,180Analyst Downgrade
Analyst Revision
Heavy News Reporting
Phillips 66 logo
PSX
Phillips 66
N/A$31.34 billion$71.74-3.2%3.41 million3.35 million
Rockwell Automation logo
ROK
Rockwell Automation
38.79$29.69 billion$255.60-2.7%663,900623,180
Canadian Natural Resources logo
CNQ
Canadian Natural Resources
N/A$29.25 billion$24.77-4.8%10.98 million5.27 millionAnalyst Downgrade
Increase in Short Interest
Heavy News Reporting
Fastenal logo
FAST
Fastenal
34.58$29.10 billion$50.48+0.3%2.65 million3.05 millionUpcoming Earnings
Marathon Petroleum logo
MPC
Marathon Petroleum
N/A$28.84 billion$43.98-3.4%7.72 million6.70 million
Ecopetrol logo
EC
Ecopetrol
17.56$28.72 billion$13.87-3.9%1.26 million896,570
AutoZone logo
AZO
AutoZone
16.36$28.41 billion$1,248.33+0.0%257,400230,020
Suncor Energy logo
SU
Suncor Energy
N/A$27.96 billion$18.33-5.4%8.09 million8.88 millionAnalyst Report
Heavy News Reporting
Kuehne + Nagel International logo
KHNGY
Kuehne + Nagel International
33.53$27.85 billion$45.26-3.0%4,3006,680Analyst Report
Increase in Short Interest
Stanley Black & Decker logo
SWK
Stanley Black & Decker
32.88$27.66 billion$172.63-0.3%1.26 million1.36 millionAnalyst Report
AMETEK logo
AME
AMETEK
31.48$27.38 billion$119.00-1.4%1.24 million811,260Heavy News Reporting
The Williams Companies logo
WMB
The Williams Companies
204.56$27.31 billion$22.50-0.8%10.45 million10.09 millionAnalyst Report
Heavy News Reporting
Waste Connections logo
WCN
Waste Connections
130.60$26.78 billion$101.87+0.2%1.05 million950,850Heavy News Reporting
Mplx logo
MPLX
Mplx
N/A$25.91 billion$24.65-1.0%1.71 million2.45 million
D.R. Horton logo
DHI
D.R. Horton
10.80$25.06 billion$69.36+0.5%2.37 million3.17 million
Wilmar International logo
WLMIY
Wilmar International
19.27$24.88 billion$39.32-0.3%1,5002,460Increase in Short Interest
AKZOD
Akzo Nobel
17.03$24.72 billion$31.68+2.7%60,60069,955Heavy News Reporting
Valero Energy logo
VLO
Valero Energy
22.51$23.77 billion$58.30-3.3%3.71 million3.86 million
Baker Hughes A GE logo
BHGE
Baker Hughes A GE
33.45$23.74 billion$22.08+0.4%4.26 million5.32 million
BKR
Baker Hughes
N/A$23.68 billion$22.87-3.5%6.39 million6.04 millionUpcoming Earnings
Increase in Short Interest
Heavy News Reporting
CLP logo
CLPHY
CLP
40.57$23.57 billion$9.33-1.2%187,000102,590High Trading Volume
KKR & Co. Inc. logo
KKR
KKR & Co. Inc.
24.98$23.45 billion$40.72-0.6%2.11 million2.38 millionAnalyst Upgrade
Decrease in Short Interest
Analyst Revision
Heavy News Reporting
FLEETCOR Technologies logo
FLT
FLEETCOR Technologies
31.99$23.00 billion$265.23-0.9%517,300550,240Analyst Revision
SGS logo
SGSOY
SGS
34.12$22.98 billion$30.37-0.6%32,90043,880Analyst Report
Increase in Short Interest
Heavy News Reporting
Valaris logo
VAL
Valaris
N/A$22.53 billion$0.33-99.7%235,00013.81 million
GZPFY
Public Joint Stock Company Gazprom Neft
12.93$21.95 billion$23.67-1.4%1,3002,140Decrease in Short Interest
Akzo Nobel logo
AKZOY
Akzo Nobel
33.83$21.01 billion$36.20-0.8%49,10025,100Analyst Downgrade
High Trading Volume
Increase in Short Interest
Heavy News Reporting
Pioneer Natural Resources logo
PXD
Pioneer Natural Resources
50.55$20.94 billion$127.38-3.8%2.78 million3.94 millionAnalyst Report
Heavy News Reporting
Occidental Petroleum logo
OXY
Occidental Petroleum
N/A$20.85 billion$22.39-7.6%24.70 million26.21 millionAnalyst Upgrade
Heavy News Reporting
CGI logo
GIB
CGI
24.92$20.54 billion$78.01-0.2%112,600131,880
ONEOK logo
OKE
ONEOK
30.46$19.63 billion$44.17-1.3%2.78 million3.20 millionAnalyst Report
Heavy News Reporting
ET
Energy Transfer
N/A$19.53 billion$7.01-1.7%18.69 million21.93 millionAnalyst Upgrade
Heavy News Reporting
Albemarle logo
ALB
Albemarle
50.32$19.18 billion$180.14-1.2%1.20 million2.18 millionAnalyst Report
Decrease in Short Interest
Hess logo
HES
Hess
N/A$19.07 billion$61.04-4.3%1.97 million1.88 millionAnalyst Report
Halliburton logo
HAL
Halliburton
N/A$19.07 billion$20.74-4.7%12.25 million12.33 millionUpcoming Earnings
Heavy News Reporting
Rollins logo
ROL
Rollins
57.29$18.31 billion$37.24-0.6%2.15 million1.37 millionIncrease in Short Interest
Heavy News Reporting
XNGSY
ENN Energy
21.51$17.72 billion$62.82-0.7%8,30014,390Analyst Upgrade
SGTZY
Surgutneftegas Public Joint Stock
N/A$17.68 billion$4.95-1.9%2001,156
Citizens Financial Group logo
CFG
Citizens Financial Group
18.30$17.35 billion$40.63-2.0%4.12 million3.69 millionUpcoming Earnings
Analyst Downgrade
Repsol logo
REPYY
Repsol
N/A$16.41 billion$10.48-3.9%32,200101,300Analyst Report
Increase in Short Interest
Genuine Parts logo
GPC
Genuine Parts
N/A$15.28 billion$102.15-2.7%979,600836,030Heavy News Reporting
Pembina Pipeline logo
PBA
Pembina Pipeline
20.90$15.06 billion$27.38-1.8%1.18 million1.11 millionAnalyst Report
Jacobs Engineering Group logo
JEC
Jacobs Engineering Group
17.00$14.68 billion$85.84+1.0%993,7001.08 million
OMV Aktiengesellschaft logo
OMVJF
OMV Aktiengesellschaft
19.83$14.25 billion$43.63+8.7%1,2003,002
Oasis Petroleum logo
OAS
Oasis Petroleum
N/A$14.24 billion$44.41-2.4%109,100182,920Analyst Report
Heavy News Reporting
UPM-Kymmene logo
UPMKY
UPM-Kymmene
9.98$14.12 billion$26.45+3.3%6,60046,511
DEN
Denbury
42.92$13.83 billion$27.90-2.7%473,200575,530Analyst Upgrade
Concho Resources logo
CXO
Concho Resources
N/A$13.47 billion$65.60-6.0%18.05 million3.61 millionAnalyst Report
Unusual Options Activity
Heavy News Reporting
C3.ai logo
AI
C3.ai
N/A$12.86 billion$134.15-3.1%1.55 million4.19 millionQuiet Period Expiration
AB SKF (publ) logo
SKFRY
AB SKF (publ)
31.06$12.73 billion$27.95-2.5%3,70013,530Analyst Report
BOIVF
Bolloré
N/A$12.62 billion$4.32-1.6%37,90053,890Increase in Short Interest
BVRDF
Bureau Veritas
24.74$12.60 billion$28.21+4.6%1581,100Analyst Upgrade
Heavy News Reporting
MARUY
Marubeni
N/A$12.52 billion$71.43-1.9%4,3008,760Analyst Upgrade
Heavy News Reporting
Brenntag logo
BNTGY
Brenntag
23.72$12.46 billion$16.13-1.8%10,60028,300Decrease in Short Interest
Graco logo
GGG
Graco
42.26$12.45 billion$73.54-1.9%667,300669,160Heavy News Reporting
LKQ logo
LKQ
LKQ
19.31$11.98 billion$37.85-3.1%2.02 million2.23 millionHeavy News Reporting
CSV / Excel Export To export this table to CSV or Excel, upgrade to MarketBeat All Access.
The How And Why of Investing in Oil Stocks

For a long time having exposure to oil was a no-brainer for any investor. From air travel and commuting to heating our homes and powering factories, oil truly powered the world.

And oil and its derivative products (e.g. gasoline) still does to a great extent. However, the fallout of the novel coronavirus may have begun a process in which the impact of oil on global markets is becoming less and less. That’s because renewable energy sources were already becoming cost-competitive with oil, and that price gap is lessening as time goes on.

Nevertheless, the world will still be using fossil fuels for the near future. And that means that oil stocks belong in your portfolio. Oil stocks contain less risk than trying to buy and sell oil on the options or futures markets. And most oil stocks pay a dividend which gives investors a predictable income stream that can make up for the volatility that is inherent in these stocks.

Introduction

The most important thing to remember about investing in oil stocks is that your investment is fundamentally driven by supply and demand. Simply put when demand for crude oil is high, prices go up. Conversely when demand decreases, so do prices.

For decades, particularly since World War II, the demand for oil was high. Many nations were building a new infrastructure of roads and bridges. Air travel was making the world smaller and businesses became truly international. And powering all of it was oil.

You can invest in oil by trading the commodity directly by trading options in the futures market. Some investors will also choose to invest in an exchange-traded fund (ETF) that is tied to the price of oil or includes a basket of companies with exposure to the oil sector.

However, a more indirect (and slightly less risky) way to play the oil market is to buy oil stocks. An oil stock can cover many areas of oil production. In this article, we’ll review why you should consider investing in oil; we’ll review your investment options, and more directly the different types of oil companies that you can invest in.   

Why should you invest in oil today?

The pandemic brought on by the novel coronavirus has been devastating for the oil and gas sector. As we mentioned above, this is a supply and demand business. And the first hint that the virus was worse than we thought was when oil futures began falling in February.

This is an important thing to know about investing in oil. Oil has been a reliable indicator of economic activity. When analysts and institutional investors forecast decreasing demand for oil, they bid down the price of crude oil. This in turn affects oil stocks which as we said tend to move with the market.

Due to the severe demand restriction during the pandemic, several oil companies have gone bankrupt. And the share price of most oil stocks has fallen dramatically. And when the notion of a “V-shaped” recovery did not materialize, it has put further pressure on oil prices.

Nevertheless, despite several near-term headwinds, oil will remain a worthwhile investment. And oil stocks can be a way for risk-averse investors to have exposure to the oil sector without dabbling in the commodities market.

The basics of oil production

Oil is expensive to bring to market. It’s more than just the cost of extracting it from the ground. Oil has to be transported, stored, and in many cases refined into gasoline or other products. And those costs are usually fixed.

This is a double-edged sword for the oil companies. When a barrel of oil sells for more than the sum of all these costs, oil companies turn a profit. And stocks of oil companies will go up as well.

However, the opposite is also true. When oil sells for less than, many of these companies will lose money. During these times, stocks of oil companies will go down.

Why buy oil stocks?

Although oil stocks generally move in concert with the price of a barrel of crude, the correlation is not always exact. For example, many oil companies will talk of a “break-even” point. This can allow the price of crude to fall a little while these companies can still be profitable. This makes oil stocks a slightly less risky option than trading oil in the options or futures market.

But perhaps the most important reason to own oil stocks is that many oil stocks pay a dividend. For example, prior to the pandemic some oil companies had increased their dividends for decades. These companies know that preserving its dividends has to be a priority because of the volatility associated with the underlying price of oil.

However, it’s important that you focus less on a company’s dividend yield (which can move up or down with the share price), but also on how the yield compares to the company’s free cash flow (FCF). In general, investors want to find companies that can pay their entire dividend obligation out of its FCF. This “payout ratio” should be at least 1.1.

Different types of oil stocks

Investing in oil stocks would be easier if all oil companies were affected in the same way by rising or falling crude prices. But, in fact, the oil sector is very diverse and each sector may be affected slightly differently by rising or falling oil prices.

Here is a brief description of different kinds of oil stocks:

  • Upstream companies – These are the companies investors most frequently think about as an oil stock. These companies are involved in exploration and production. As the name implies, this means these companies explore locations looking for oil. When they find a promising location, they drill wells to extract the oil. However as you might imagine, these companies are affected most by changes in the price of crude oil. The largest upstream company in the United States is ConocoPhillips (NYSE:COP).

  • Midstream companies – These companies transport crude oil through pipelines that is then stored in terminals that they own. The oil stays there until it is sent to be refined or exported. Some of these companies will even transport the newly refined company through its own pipeline networks. Midstream companies are slightly more insulated from oil price fluctuations because they usually operate on long-term contracts with fixed terms. One of the leading midstream companies is Enterprise Products Partners (NYSE:EPD). A unique aspect of EPD stock is that the company is a master limited partnership. This has tax advantages for individual shareholders but can increase the risk of larger losses.

  • Downstream companies – These companies refine oil into other products such as gasoline and petrochemicals. In many cases, these companies are also part of selling this refined product to consumers. Two examples of downstream companies are gas station operators and refinery operators. Although these companies are not directly affected by a drop in crude prices, their stock still tend to fall when oil prices fall. One of the major downstream companies is Phillips 66 (NYSE:PSX).

  • Integrated companies – These companies do business in more than one of the fields mentioned above. When you hear a reference to “Big Oil” companies, it is a reference to companies such as ExxonMobil (NYSE:XOM) and Chevron (NYSE:CVX) that have large upstream and downstream operations with some midstream business.

  • Oilfield services companies – Another way to invest in oil stocks is through the companies that provide equipment, operational support, and logistics to other oil companies, typically upstream companies. Oilfield services companies are hurt when oil prices fall because one of the first things upstream companies will do is cut their service costs.

ETFs are a different way to play oil stocks

The easiest and more popular way to invest in oil stocks is to buy stocks of individual companies. However, investing in exchange-traded funds (ETFs) can be a smart way to manage the risk of this sector. An oil ETF allows investors to invest in one or more of the sectors listed above at one time. For example, the SPDR Oil and Gas Exploration & Production ETF (NYSEARCA: XOP) tracks the upstream sector.

The final word about investing in oil stocks

Oil stocks have been battered in 2020. But the near-term outlook for oil makes oil stocks an attractive investment opportunity. The fortunes of oil companies are impacted to a greater or lesser extend to the price of crude oil. And that’s why it’s important for investors to understand what subsector of the oil industry the company they are interested in investing in is engaged in.

However the benefit of having multiple options is that investors have many options including buying shares of ETFs that add even more diversity.



Enter your email address below to receive a concise daily summary of analysts' upgrades, downgrades and new coverage with MarketBeat.com's FREE daily email newsletter.