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As a service to our readers, we've put together a list of 10 cheap oil stocks under $5. Here are the stocks, share prices, and year-to-date (YTD) returns for each:
- Vallourec Sp (OTCMKTS ADR: VLOWY); $1.42; +13.6% YTD
- Ithaca Energy Inc. (TSE: IAE); $1.93; +14.5% YTD
- SandRidge Permian Trust (NYSE: PER); $3.45; +16.95% YTD
- Geopark Ltd. (NYSE: GPRK); $5.06; +17.4% YTD
- Gastar Exploration Inc. (NYSEMKT: GST); $1.89; +22.26% YTD
- Ascent Resources Plc. (LON: AST); $2.11; +25.53% YTD
- Erin Energy Corp. (NYSEMKT: ERN); $3.94; +29.1% YTD
- Chesapeake Granite Wash Trust (NYSE: CHKR); $3.25; +38.3% YTD
- Southcross Energy Partners LP (NYSE: SXE); $2.27; +68.15% YTD
- Bonanza Creek Energy Inc. (NYSE: BCEI); $2.27; +122.55% YTD
This list of oil stocks contains some highly speculative plays, so we can't recommend buying them.
You see, oil prices hit a 10-year low in January last year, and that meant a lot of American oil companies struggled to make profits. But since then, prices have climbed 51%. With crude oil prices at $53.79 a barrel, American oil is profitable again.
That's why U.S. oil production has risen 7% since October.
And Money Morning Global Energy Strategist Dr. Kent Moors predicts oil prices could rise another 20% in the first half of 2017.
As oil prices rise and American production expands, owning the best oil stocks in 2017 will be a great way to profit. But not all oil company stocks are equal. For example, the oil giant BP Plc. (NYSE: BP) just told investors after its latest round of earnings (Feb. 7) that it won't be profitable unless oil rises above $60 a barrel.
But the top oil stocks we're recommending are already raking in money.
One stock on our list has surged 90% since last year.
And analysts are projecting its revenue could grow by 58% in 2017.
Check our best oil stocks to buy in 2017...