Best Oil Penny Stocks

Read our Advertiser Disclosure.
Contributor, Benzinga
February 26, 2024

Athabasca Oil (OTCPK:ATHOF)

Athabasca Oil Corp is an energy company. It is focused on the exploration, development, and production of light oil and liquids-rich natural gas. The company organizes its business under two operational segments, Light Oil and Thermal Oil. It generates maximum revenue from the Thermal Oil segment. Thermal Oil includes the exploration, development, and production of bitumen from sand and carbonate rock formations located in the Athabasca region of Northern Alberta.

Open3.530Close3.520
Vol / Avg.161.628K / 249.416KMkt Cap2.000B
Day Range3.470 - 3.54052 Wk Range1.910 - 3.510

PetroTal (OTCQX:PTALF)

PetroTal Corp is an oil and gas company. The company is engaged in the exploration, appraisal, and development of crude oil and natural gas in Peru, South America. It generates revenues from the sale of crude oil. The company’s operation includes Block 95 – Bretana oil field and Block 107 – Osheki Prospect.

$0.55
-0.01[-1.79%]
Last update: 3:59PM (Delayed 15-Minutes)
Get Real Time Here
Open0.550Close0.550
Vol / Avg.242.812K / 126.434KMkt Cap505.600M
Day Range0.550 - 0.56852 Wk Range0.417 - 0.648

()

Viking Energy Group Inc is an independent exploration and production company. The company is engaged in the acquisition, exploration, development, and production of oil and natural gas properties. Its properties are located in Miami and Franklin Counties in eastern Kansas, Missouri, Texas, Louisiana, Mississippi, and Alberta. The company generates revenue from oil and gas sales.

Open-Close-
Vol / Avg.- / -Mkt Cap-
Day Range- - -52 Wk Range- - -

United Energy (OTCPK:UNRG)

United Energy Corp is engaged in the exploration and production of oil and natural gas properties. The company’s holdings include assets and operations in Texas, Oklahoma, Kansas, and Louisiana.

$0.0292
-0.0009[-2.99%]
Last update: 3:57PM (Delayed 15-Minutes)
Get Real Time Here
Open0.025Close0.029
Vol / Avg.2.389M / 79.262KMkt Cap919.929K
Day Range0.021 - 0.03252 Wk Range0.015 - 0.075

Ring Energy (AMEX:REI)

Ring Energy, Inc. is an independent exploration and production company that manages the acquisition, exploration, development and production of oil and natural gas in Texas and New Mexico, with 54,959 net developed acres and 2,337 net undeveloped acres in Andrews, Gaines, Crane, Winkler and Ward counties, Texas, along with13,930 net developed acres and 12,512 net undeveloped acres in Yoakum, Runnels and Coke Counties, Texas and Lea County, New Mexico.

Open1.370Close1.360
Vol / Avg.719.584K / 1.871MMkt Cap269.970M
Day Range1.350 - 1.39052 Wk Range1.250 - 2.430

Tellurian (AMEX:TELL)

Tellurian Inc. engages in the natural gas business worldwide, developing a portfolio of natural gas production, liquefied natural gas (LNG) marketing and infrastructure assets.

Open0.740Close0.705
Vol / Avg.61.008M / 37.636MMkt Cap516.985M
Day Range0.630 - 0.75452 Wk Range0.355 - 1.755

The corona pandemic might have rocked the global economy, especially the oil industry, but penny stocks survived. Penny stocks offer high risk and high rewards for investors at the same time, including oil penny stocks. While you may not believe that oil stocks could be cheap, remember that the industry is massive and has space for a range of parallel and/or supplemental businesses.

A barrel of oil experienced a negative price range for the first time in April 2020. Many companies in the oil industry reported substantial losses. The oil price dropped so low in April 2020 that some companies were willing to pay people to take barrels of crude oil from them. Just a month later, there seemed to be hope for oil companies. Since then, the COVID-19 pandemic has seen oil prices fall very low and rise quite high because of the Russian invasion of Ukraine. As a result, it can be difficult to predict what oil prices will do. At the same time, you want the option to diversify your oil holdings as much as possible.

Quick Look at the Best Oil Penny Stocks:

  • Athabasca Oil Corp
  • PetroTal Group
  • Viking Energy Group, Inc.
  • United Energy Corp
  • Ring Energy, Inc.
  • Tellurian Inc.

The year 2020 experienced plenty of global market volatility. Oil penny stocks seem to be moving higher in the market, but not all penny stocks are. This reaction is attributed to the opening of most economies in the world within a few weeks. The opening of global economies affects these penny stocks. Most penny stocks act independently — broader markets might decline but penny stocks could remain stable. You must monitor your assets so you can see if your penny stocks are performing as expected.

Oil penny stocks are stocks of small companies, which deal in the oil and gas industry. These stocks offer short-, medium- and long-term investment opportunities. As a trader, you can enjoy the flexibility and make money from penny stocks. You can maximize your premiums by trading in stocks, which have low share prices and high upside potential.

If you’re looking for penny stocks to buy, Benzinga has compiled the best oil penny stocks for you to consider. As the list shifts and the markets change, remember, that you can do quite a lot to change your portfolio, diversify your investments and make the most of your hard-earned money. At the same time, you can diversify with different types of oil stocks so they’re not all cheap or pricey.

Overview

Penny stocks trade outside the top market exchanges. A lot of speculation and high risk is associated with these small-cap stocks. The specific definition of penny stocks varies among different countries. In the western market, penny stocks are stocks that trade below $5. At the same time, these stocks could easily jump over $5 if you aren’t watching carefully. Plus, there are already several oil stocks that have risen far above most investor budgets, like Chevron (CVX).

They are classified as micro-cap stocks because their market capitalization is less than $300 million. Just like other stocks, penny stocks offer an opportunity for potential investment. Penny stocks are a unique opportunity, but you must be careful with these investments because the oil market can fluctuate very fast.

Penny stocks have the following traits:

  • They lack liquidity.
  • Information related to penny stocks is never readily available to the public.
  • Most penny stocks lack history regarding assets, revenues, operations, and products.  
  • They do not have minimum standards.
  • They could be delisted at any time.
  • They have massive potential.
  • They require quite a bit of research.
  • The oil market is favorable and prices could rise quickly.
  • The oil market tends to be rising over long periods of time.
  • Oil stocks can suffer losses just like any other, especially given regional events or political tension.

The oil and gas industry is experiencing 2 global disasters: the COVID-19 pandemic and the oil price wars. This caused oil and gas stock prices to drop. With many people implementing social distancing, motor vehicles were not in use. Despite the panic of the oil industry, it’s evident that oil stocks are bouncing back.

With oil stocks on the upswing, the stock market has a lot of opportunities for investors. There have been global output cuts of crude oil due to the low demand for oil in many countries. Also, the strained relationship between the U.S. and China is closely being monitored by investors. If the friction leads to the erosion of the Phase 1 trade agreement, this will affect the oil prices negatively. More uncertainty in the U.S. financial markets has been fueled by the recent violent unrest in major U.S. cities.

Despite having high risks, oil penny stocks have a possibility of yielding very high returns from low investment. Oil penny stocks are regulated at a national level by a stock exchange. The U.S. Securities and Exchange Commission (SEC) has its own definition of penny stocks. These stocks have the following features:

  • Shares of a small company trade below $5; shares of private companies lack an active trading market. 
  • Trading shares are done over the counter but they can be listed on both local and foreign securities exchanges. 
  • Shares are very illiquid.
  • Pricing of shares is difficult due to a lack of price quotations. 
  • Oil stocks point to more than oil prices and production as these things are affected global events

Penny stocks are placed in their independent category known as a trade-to-trade basket. This is because of the high risk associated with them. Penny stocks can be traded both in and outside the stock exchange. Transactions are done on a gross basis.

It’s important to understand all the risks associated with oil penny stocks. Although these small caps offer a wonderful investing opportunity with plenty in the market, you need to know which ones to avoid and which ones to trade. You can use a stock screener, which is a smart trading program. A stock screener helps you identify exciting oil penny stocks.

To be a pro at trading penny stocks, you need to come up with trading strategies. Following these trading strategies could help you make money in the short, medium and long term. Moreover, you need to be prepared to exit positions that are clearly not benefiting you.

Penny stocks can spread across several sectors, like the best tech penny stocks or best biotech penny stocks, allowing you to diversify even further.

Best Online Brokers for Oil Penny Stock

Below is our list of best online brokers to use when you want to trade in these stocks. When choosing a broker, make certain that you feel comfortable using the broker. One man’s perfect brokerage is another man’s “I’m not so sure”.

Are Oil Penny Stocks Attractive? 

When it comes to oil penny stocks, you need all the intel you can gather. Information from analysts should be part of your trading strategy. Due to their volatility, it’s always important to be updated on the latest oil penny stock news. Your penny stocks trading strategy could benefit you in a high-risk trading environment. Consistent research will help you make a more informed decision when trading oil assets. Remember, you want to try to diversify all your investments in a way that will help you hedge against risk, and this includes oil assets.

Q

Are oil penny stocks a good investment?

A

While oil stocks are volitile, doing proper research an make oil penny stocks a good investsment.

Q

What are oil penny stocks?

A

Oil penny stocks are shares in low-value companies in the oil sector.

Q

Which oil penny stocks are good?

A

Check out Benzinga’s guide to oil penny stocks above.

Related content: