The Best Oil Stocks to Buy Right Now

oil-rigs-blue-and-green-skyOil prices have climbed 52% since hitting a 10-year low in January 2016, and prices are going to continue to rise in 2017.

To help investors profit as oil prices rise, we've got the best oil stocks to buy this year. You see, the oil stocks we've picked are perfectly positioned to profit from rising oil prices. And their gains will far exceed the gains of oil in 2017.

Oil prices hit a 10-year low of $35.79 per barrel in January 2016. Since then, WTI crude oil prices have climbed to a current price of nearly $53.92 a barrel.

Money Morning Global Energy Strategist Dr. Kent Moors believes oil prices could rise by another 20% by Q2 2017.

The easiest way to profit from rising oil prices is by buying the best oil stocks. Trading oil futures can be difficult as futures can swing dramatically on current events. But the top crude oil stocks are going to gain consistently, and they will pay a dividend, too.

Here's why investing in oil stocks is the best way to profit from rising oil prices and our list of the best oil stocks to buy in 2017...

Why Oil Stocks Will Make Your 2017 Profitable

Rising oil prices and less regulation will be great news for our top oil stocks in 2017.

On Nov. 30, OPEC came to an agreement with 11 other countries to reduce oil production. By limiting the supply of oil, prices will rise as demand stays the same.

OPEC's plan calls for reductions of 32.5 million barrels per day in 2017. That's why crude oil prices have gone up 16% since the Nov. 30 announcement.

Provided the OPEC deal holds together, Moors sees potential for oil prices to rise above $60 a barrel by the middle of 2017. Since the OPEC deal is new for 2017, we should see even better performance with oil prices than we did in 2016.

And while OPEC is limiting the supply of oil, demand is continuing to rise.

Trending: Our Bold 2017 Oil Price Forecast

Energy is always in demand, but the EIA predicts the world's demand for energy is going to rise 25% by 2040. Much of this boost in demand will come from growing populations in India and China.

Even as energy demand rises, oil will remain the dominant source for meeting demands. Exxon Mobil Corp.'s (NYSE: XOM) latest "Energy Outlook" report forecasts that oil will remain the primary energy source through this surge in demand as we head towards 2040.

While oil prices are rising, the new U.S. president is planning to make it easier than ever for oil companies to produce and sell their oil. And that's great news for American oil company stocks.

Trump has indicated he plans to reduce restrictions on U.S. oil exploration and drilling. His picks for key cabinet positions affirm these strategies. In fact, one of his first executive orders was to facilitate the approval of the Keystone XL and Dakota Access oil pipelines.

And while Trump has only been in office for a week, his cabinet nominations signal a favorable climate for oil production. Trump's pick to run the EPA is Oklahoma Attorney General Scott Pruitt. As attorney general, Pruitt sued the EPA over regulations that stifled the oil and gas companies in his home state.

Forecast: There Are Big Changes and Big Profits Coming to the Oil Sector in 2017

President Trump also nominated former Exxon CEO Rex Tillerson for secretary of state. While the secretary of state doesn't control domestic laws, it adds a favorable voice for oil to one of the top positions in the government.

As oil prices rise and the newest president plans to make "America energy independent," investors can profit by owning the right oil stocks in 2017...

Like one that grew 131% in 2016 and has analysts projecting up to 60% more growth in 2017.

Or another one with a projected revenue increase of 85% in 2017.

And income investors might like a stock that increases its dividend four times a year.

Read on to see our best oil stocks to buy this year...

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Best Oil Stocks to Buy in 2017 No. 3: Plains All American Pipeline LP

Plains All American Pipeline LP (NYSE: PAA) is a Texas-based company focusing on the transportation, storage, and marketing of crude oil, liquefied petroleum gas, and natural gas throughout the United States and Canada.

The company controls more than 4 million barrels of natural gas and crude oil each day, making it perfectly positioned to profit from rising oil prices and loosening restrictions in 2017.

In 2016, PAA joined with Phillips 66 Partners LP (NYSE: PSXP) for the development of a $15 million pipeline expansion between Oklahoma and Canada. The new pipeline will increase the company's capacity by another 10,000 barrels of oil each day.

If you own PAA stock, expect to be rewarded with some generous dividends. The current dividend yield is 6.92%, which is just as high as Royal Dutch Shell's famous 6.93% dividend yield.

PAA is trading at $31.78, with shares up 50.5% year over year (YOY).

Best Oil Stocks to Buy in 2017 No. 2: CONSOL Energy Inc.

CONSOL Energy Inc. (NYSE: CNX) is a Pittsburgh-based energy company with stakes in natural gas and coal production.

The company is the nation's top producer of high-BTU bituminous coal and remains the country's largest underground coal miner. CNX is also the largest exporter of coal in the United States.

But it's the company's transition to oil and gas that gets it on our list.

CONSOL has realized coal isn't the future of energy. As of 2016, the majority of CNX's revenue comes from natural gas. And it is focusing on some of the Appalachian basin's major shale formations.

CNX is trading at $16.91, and it grew 131% in 2016 as it began its modernization into oil and gas. And the stock is primed to move in the future.

The stock has an average rating of "Buy," and analysts project its share price could grow by another 60% in 2017.

Best Oil Stocks to Buy in 2017 No. 1: Magellan Midstream Partners LP

Magellan Midstream Partners LP (NYSE: MMP) is an Oklahoma-based company that transports, distributes, and stores crude oil and refined petroleum products.

Magellan is another company that will stand to benefit from relaxed drilling restrictions in the United States. While it won't drill for the oil, it'll be standing by ready to transport and store the massive supply that is sure to flood the market.

The company has over 10,000 miles of pipeline systems for refined products, ammonia, and crude oil. It also just started a project in December 2016 to expand its storage capacity by as much as 1.7 million barrels of oil.

In early January 2017, the company announced plans for pipeline expansion from the Gulf Coast into the Central Texas and Dallas-Fort Worth markets.

Magellan has plenty of room for growth in the coming year. The company has a 39.69% operating margin, compared to just over 21% for the entire S&P 500. That means its expenses are low and it's able to turn more of its sales into profits.

MMP is trading at $80.85, with shares up 26% YOY. The company also has a 4.23% dividend yield, which adds some extra income for investors. And MMP has increased its dividend 59 times since its IPO in 2001. Investors can expect it to continue rising in 2017.

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