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10 Top Oil Penny Stocks to Watch (May 2017)

The following list shows the top oil penny stocks to watch in May, ranked in order of biggest gains so far this month…

Oil Penny Stock Current Price Month-to-Date Gain
Zion Oil & Gas Inc. (Nasdaq: ZN) $1.65 +29.2%
Rex Energy Corp. (Nasdaq: REXX) $0.43 +26.4%
Ocean Rig UDW Inc. (Nasdaq: ORIG) $0.24 +18.7%
Approach Resources Inc. (Nasdaq: AREX) $2.43 +17.4%
Eco-Stim Energy Solutions Inc. (Nasdaq: ESES) $1.26 +16.8%
U.S. Energy Corp. (Nasdaq: USEG) $1.01 +16.2%
Calumet Specialty Products Partners LP (Nasdaq: CLMT) $3.94 +9.6%
CARBO Ceramics Inc. (NYSE: CRR) $7.50 +9.5%
Geopark Ltd. (NYSE: GPRK) $7.66 +7.7%
Eca Marcellus Trust I (NYSE: ECT) $2.20 +7.3%

The oil sector has been beaten down lately as oil prices struggle to stay in the mid-$50 range. The WTI crude oil price – the U.S. benchmark for oil prices – is down 8.8% to $46.14 so far in Q2. On May 4, it closed at $45.52 – the lowest settlement since Nov. 29, 2016.

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Still, six oil penny stocks have managed to post solid double-digit returns in May. The best-performing oil penny stock has been Zion Oil & Gas. Shares of ZN stock have gained 29.2% to $1.65 over just six sessions so far this month.

Those gains show how penny stocks can offer big returns in just a matter of days.

But here at Money Morning, we do not recommend buying into any of the top oil penny stocks listed in the chart above. While these firms are much safer than the ones listed over the counter (OTC) or on the pink sheets, you should always study a company's finances to make sure their shares are safe enough for your portfolio.

top oil penny stocks to watch

The volatile nature of the oil sector over the past three years has made this research even more important. After all, oil prices are still in the midst of one of their worst bear markets in history. Over the last three years, WTI has crashed 53.9% from $100 per barrel to $46.14 due to the growth of U.S. fracking. This – combined with OPEC's repeated refusal to cut production up until last November – has dragged both global and U.S. prices lower.

But Money Morning Global Energy Strategist Dr. Kent Moors still looks for profitable oil stocks in this unpredictable sector. In fact, he's recently recommended an oil transportation and storage company that stands to benefit from a $1 trillion oil boom called "Permania."

"Permania" refers to the production growth happening right now across the Permian Basin, a massive oil region spanning Texas and New Mexico. The U.S. Geological Survey last year discovered as much as 20 billion barrels of oil in just one region of the basin. And Moors' stock pick could rake in millions in new revenue from the discovery.

Although his recommendation isn't a penny stock, it offers investors the perfect combination of strong growth potential and a very big dividend.

Here's one of the best oil stocks to buy right now…

This Oil Stock Could Offer a Big Double-Digit Return by May 2018

Join the conversation. Click here to jump to comments…

  1. warren s caldwell | May 8, 2017

    I research and watch the penny stocks/cannabis stocks and mostly related ones every day.I am 75 yrs old and am just now just getting back into the market and am kinda like a fish out of water.However I am at a bit at a quandary trying to understand why it seems that the entire pot stock numbers seem to be ALL off and in a downward/static trend pretty much across the board.I have a well balanced portfolio across many different aspects of this industry and they all seem to be down a bit ! It seems like they mostly all had a good run several months back and I am wondering if I missed my opportunity back then or do you think we are going to have another run like we did then ? Maybe even a bigger and better one and if I am patient it might come around. I am interested in your thinking on this situation but not asking for stock advise. Thank you WC

  2. Robert Parsons | May 17, 2017

    I'm new to pot stocks, not so new to the pot thing as I grew up in central CA coast. I'm still wanting to build a balanced portfolio like yours in this industry. I thought Apple was overpriced in 2010, but failed to see the long term trends. Don't panic yet. This industry is still new and has a long long way to grow. That said, this is speculative stuff, so I hope your dividend portfolio was well stocked up before you played with these micro cap stocks. I'm hoping to put about 2% of my portfolio into this industry in the coming months, but not much more till it matures.

  3. Eber | May 18, 2017

    When the FEDs announced that they were going to crack down on states that legalize marijuana back in March this year, pot stock prices dropped. Between now and the end of June is a good time to look at your favorite pot stock again. The rumor is the FEDs are changing their outlook on pot and seeing big TAX revenue

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