Investing in penny oil stocks is a smart move as crude oil prices continue to rise. The surge in West Texas Intermediate (WTI) crude oil prices in 2024 has set the stage for a strong performance in the energy sector. This increase in oil prices, coupled with escalating tensions in the Middle East, is expected to drive penny oil stocks to rise significantly.
One such penny oil stock to consider is Baytex Energy (BTE). This company explores, develops, and acquires oil and natural gas properties in Canada and the United States, with a focus on Texas and Alberta. Baytex Energy has seen a 16% increase in production in 2023, primarily in crude oil. With a strong production base and a commitment to shareholder returns, Baytex Energy is well-positioned to benefit from the current spike in oil prices.
Another promising penny oil stock is Kosmos Energy (KOS). While the company’s Q1 results are yet to be released, institutional interest in KOS shares is strong, indicating a potential price increase. Kosmos Energy has also improved its efficiency, leading to higher returns on capital employed. With the potential to rise by 50% or more, Kosmos Energy is a stock worth considering for investors looking to capitalize on the current oil market trends.
Amplify Energy (AMPY) is another penny oil stock to keep an eye on. The company recently reported strong earnings, surpassing Wall Street expectations. With a focus on leveraging higher oil prices for increased profitability, Amplify Energy is poised for growth. The forecast price range for AMPY stock suggests stable returns in the near future, making it an attractive investment opportunity.
Overall, investing in penny oil stocks presents an opportunity for significant gains as oil prices continue to rise. Baytex Energy, Kosmos Energy, and Amplify Energy are just a few examples of penny oil stocks with the potential for substantial growth in the current market conditions.