Meanwhile, oil companies that operate independently of OPEC can also have an impact on the oil market if they allocate too much or not enough capital to new oil projects.Given the volatility in oil prices, an oil company must have three crucial characteristics to survive the industry's inevitable downturns.With those factors in mind, here are three top oil stocks worthy of investors' consideration:ConocoPhillips' diversified portfolio has low supply costs, with a significant portion of its oil reserves economical below $40 a barrel. Retirement
ConocoPhillips routinely boasts one of the highest credit ratings among E&P companies, backed with a low leverage ratio for the sector and Kinder Morgan has minimal direct exposure to oil prices because it generates most of its income from fee-based contracts. Reuben Gregg Brewer | About Us Reuben Gregg Brewer | The price of oil is the most important value on the international commodity markets. Stock Market
However, geopolitics and capital allocation also play crucial roles in the industry. We also reference original research from other reputable publishers where appropriate. Aug 27, 2020 See you at the top! Updated: Aug. 25, 2020, 4:23 p.m. Oil stocks are getting a boost for the same reason most stocks are today: positive news on the jobs front. Because of that, the company can produce a substantial amount of cash flow at lower oil prices.Finally, the company complements its diversified, low-cost portfolio with a top-tier balance sheet. While each segment has a specific set of risk factors, the overall business is both cyclical and volatile.Oil demand grows along with the economy, which when robust can support higher oil prices and producer profitability. These are the oil & gas stocks with the lowest 12-month trailing Data as of 08/28/20 Aug 28, 2020 Investopedia uses cookies to provide you with a great user experience. OPEC's actions can significantly affect the price of oil.That was the case in early 2020, as the organization’s market support agreement with Russia collapsed right as COVID-19 knocked the wind out of demand. Hubbert’s peak theory is the idea that as oil production follows a bell-shaped curve, global oil production will peak and go into terminal decline. Matthew DiLallo, Reuben Gregg Brewer, and Daniel Foelber | Find the latest information in the newsfeed at the end of this article.Oil companies are crucial to the global economy because they provide the fuel needed for transportation and power, as well as the building blocks of petrochemicals.However, the oil industry is highly competitive and volatile. Daniel Foelber | Aug 28, 2020 By using Investopedia, you accept our The company, for example, leverages its midstream network to provide its refineries and petrochemical facilities with low-cost oil and NGLs. Aug 29, 2020 Aug 27, 2020 Because of those features, Kinder Morgan’s earnings proved to be Finally, Kinder Morgan has a strong investment-grade balance sheet. Oil & Gas Production Stocks The oil and gas production sector includes companies that explore for, develop and produce oil and natural gas. Aug 27, 2020 Really, really excited...Chasing yields can be lucrative but also dangerous if you don't know how to excel as an income investor.These oil stocks have what it takes to endure the sector's turbulence.Integrated energy giant Exxon is struggling mightily. James Brumley | Aug 29, 2020
Aug 27, 2020 Find the latest iPath Series B S&P GSCI Crude O (OIL) stock quote, history, news and other vital information to help you with your stock trading and investing.
Here's a closer look at the factors to consider before buying oil stocks, as well as the top companies in the sector.The oil industry is inherently risky for investors.