As energy demand rebounds and oil prices fluctuate, many investors are turning their attention back to traditional energy.
Whether you’re new to investing or simply looking for exposure to a high-demand sector, the best oil stocks offer a mix of income potential, long-term growth and defensive stability.
In this guide, we’ll break down the top oil stocks to watch right now, explore why oil investments matter in 2025 and help you decide if they’re a fit for your portfolio.
Best Oil Stocks in 2025
Here are several oil stocks currently standing out based on performance, dividend strength and market positioning:
| Stock | Ticker | Market Cap | Dividend Yield | Current Share Price | P/E |
|---|---|---|---|---|---|
| Occidental Petroleum Corporation | OXY | $43.06 Billion |
2.19% |
$42.80 |
11.86 |
| Targa Resources Corporation | TRGP | $36.05 Billion |
2.41% |
$164.98 |
24.00 |
| Exxon Mobil | XOM | $470.04 Billion | 3.63% | $107.64 | 14.57 |
| Marathon Oil Corporation | MPC | $48.58 Billion | 2.30% | $163.55 | 24.25 |
| EQT Corporation | EQT | $32.62 Billion | 1.16% | $55.68 | 28.53 |
| Suncor Energy Incorporation | SU | $44.03 Billion | 4.56% | $35.69 | 9.40 |
Why Invest in Oil Stocks?
There are several reasons to invest in oil stocks. Some of the advantages are:
- Global energy demand: Oil is used in a variety of products, and its demand is expected to increase in the future.
- Price of oil has increased: The oil price has increased over the last few years, and there’s an expectation it will continue to do so with demand.
- Store of value: Because of its necessity and demand oil is a reliable store of value.
- Profit over volatility: Oil can be a good investment, especially when investors want to make a short-term profit if swings happen in oil prices.
Oil Stocks vs. Other Investment Options
| Investment Type | Pros | Cons |
|---|---|---|
| Oil Stocks | -High dividend yields (for majors) -Global demand -Strong performance during inflation |
-High volatility due to oil prices -Vulnerable to regulation -Impacted by geopolitical tension |
| Renewable energy stocks | -Government subsidies and incentives -Long-term growth potential |
-Short-term profitability -High-capital costs -Market competition |
| Utility stocks | -Stable and regulated income -Low volatility |
-Market-wide downturns impact performance -No sector-specific exposure |
| Real Estate Investments (REIT) | -Rental property gives consistent income -Hedge against inflation |
-Sensitive to interest rates -Tax inefficient for some investors |
Risks of Investing in Oil Stocks
All investments can present inherent risks. Oil stocks have their disadvantages. Some of the cons are as follows:
- Commodity price volatility: Fluctuations in crude oil, natural gas and energy products can impact a stock’s price.
- Geopolitical risks: Oil and gas are part of a global industry. Oil operations are located in regions where there is geopolitical tension. These kinds of conflicts can impact oil production.
- Environmental regulation: Increased climate regulations, carbon taxes and bans on fossil fuels can impact oil production. Governments may impose regulations that can make oil production less profitable.
Trends Shaping Oil Stocks
Wondering about what trends are shaping the future of oil stocks? Here are a few trends that investors should watch for:
- Shift in oil production: Crude oil production may decline in 2026 according to some experts. This trend may be due to current overproduction.
- Global energy transition: Many countries are looking to invest in low-carbon energy sources, so there may be a shift away from oil.
- Regulatory movement: There is a push in the United States to reshape energy and climate policies, which could impact oil production.
- Optimization of drilling technology: With the advent of artificial intelligence (AI), oil drilling can become more efficient and safe.
How to Buy Oil Stocks
Here’s a step-by-step guide on how to buy oil stocks:
- Step 1: Choose a brokerage platform and fund your account – Choose a platform that allows you to buy oil stocks, and link a bank account.
- Step 2: Do your research – Look into oil stocks and ETFs. You want to take a look at dividend yield, debt levels, production scale and region, exposure to renewables and P/E ratio.
- Step 3: Find the company ticker – Locate the company ticker on the platform.
- Step 4: Decide how much you want to invest – Before investing take a strategic look at your overall portfolio. Talk to a financial planner if you’re unsure of what investment to make.
- Step 5: Place an order – Choose your order type and submit.
- Step 6: Track your investment – Monitor your investment and make adjustments as necessary.
Final Take to GO
Oil stocks are once again in the spotlight — and for good reason. Between rising energy needs, strong dividends and economic resilience, the best oil stocks offer both opportunity and risk. If you’re thinking about investing, consider your time horizon, risk tolerance and how oil fits into your overall strategy.
Next Step: Compare stock fundamentals, review recent performance and speak with a financial advisor if needed. Whether you’re investing for growth or income, oil could be a powerful addition to your portfolio.
FAQs About Oil Stocks
Here are some common questions investors ask about which are the best oil stocks to invest in ASAP:- What are the best oil stocks for beginners?
- Chevron Corp. (CVX), ConocoPhillips (COP) and Exxon Mobil Corp. (XOM) are good oil stocks for beginners.
- Should I invest in oil stocks in 2025?
- Yes, many oil companies offer dividend yields. Oil stocks can serve as an inflation hedge, and it appears the global demand for this commodity will only rise.
- Which oil stocks pay dividends?
- Devon Energy Corp. (DVN), Occidental Petroleum Corp. (OXY) and Exxon Mobil Corp. (XOM) pay dividends on their oil stocks.
- Are oil stocks good for long-term growth?
- Yes, with technological advancements in extraction and production, as well global energy needs and diversification potential, oil will remain a good stock for long-term growth.
Information is accurate as of May 16, 2025.
Editorial Note: This content is not provided by any entity covered in this article. Any opinions, analyses, reviews, ratings or recommendations expressed in this article are those of the author alone and have not been reviewed, approved or otherwise endorsed by any entity named in this article.