Crude oil prices have risen by more than 50% since January, putting upward pressure on inflation. There are also concerns that rising oil prices might undermine a post-pandemic economic rebound, particularly in the United States and India. Oil prices are high because of supply chain bottlenecks and a lack of investment in the industry. On October 5, crude oil prices surpassed $81 a barrel, with a further rally expected as temperatures drop and demand rises. Despite pleas from the US and India to boost supplies quickly, a conference of the world’s largest oil-producing countries earlier this week resulted in an agreement to increase production. Crude oil has rebounded this year, giving the oil industry some much-needed breathing room. Oil firms have faced the pandemic’s and environmentalists’ combined demands to emerge stronger than projected. According to hedge funds, Exxon Mobil Corporation and Chevron Corporation are two of the best oil companies to buy right now.
Here is Insider Monkey’s list of the 10 best oil stocks to buy according to hedge funds. The corporation is in the business of producing natural gas and crude oil. At the end of the second quarter of 2021, 43 hedge funds in Insider Monkey’s database had positions in EQT Corporation worth $468 million, up from 35 the previous quarter with interests totaling $437 million. Chesapeake Energy Corporation is the eighth best oil company to purchase on our list. The company specializes in natural gas and oil exploration and development. At the conclusion of the second quarter of 2021, 43 hedge funds in Insider Monkey’s database had positions totaling $1.9 billion. Pioneer Natural Resources Company is an independent oil and gas production company situated in Texas. It is ranked eighth on our list of the top ten oil stocks to purchase based on hedge fund recommendations. With a price objective of $196, Goldman Sachs raised the company’s stock to Conviction Buy from Buy. Hedge funds put the company sixth on our list of the top ten oil equities to purchase. At the end of the second quarter of 2021, 48 hedge funds in Insider Monkey’s database had positions in Marathon Petroleum Corporation totaling $2.6 billion. Hedge funds ranked Cheniere Energy, Inc. sixth on the list of the top ten oil stocks to purchase. The corporation is based in Texas and acts as an energy infrastructure company. Cheniere Energy’s stock has an Overweight rating from Barclays, with a price target of $129, up from $104. For more details, click 10 Best Oil Stocks To Buy According To Hedge Funds.