3 Top Oil Stocks to Buy Right Now
The oil market fell into complete disarray following the decision by Russia and OPEC to start a price war. The oil price decline seen on the first business day following OPEC's announcement that it would materially cut the prices it charges was nothing short of brutal.
The ultimate goal of this war, however, is to kill the U.S. shale boom, not to permanently push oil prices lower. Whether the effort is successful or not remains to be seen, but the near-term pain for investors is likely to be very real. And this might just be an opportunity for contrarians to pick up some incredible bargains, if they stick to the companies built to survive in a highly cyclical commodity market like oil. Here are three to look at today.
ExxonMobil (NYSE: XOM) is one of the largest integrated energy majors on planet Earth. It has been using weak oil prices to invest on the cheap in new production, with plans to spend as much as $35 billion a year through 2025. A big chunk of that has been earmarked for onshore U.S. oil investment. Management estimates that this investment can make a 10% return with oil as low as $35 a barrel, a proposition that is going to be tested.
Source Fool.com
