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The biggest news this week was a spike in crude prices after the attack on Saudi Arabia's oil facility.
As is usually the case, such things are temporary. Oil prices retreated when the market learned that Saudi oil would be back to full capacity in a few short weeks if that.
Crude prices gained more than 10% on the news and surrendered most of that shortly after.
Oil stocks followed a similar trajectory.
In August, I recommended W&T Offshore Inc. (NYSE: WTI) as a penny stock to buy for huge gains.
That pick proved profitable.
The stock jumped 25% after the Saudi attack. Even after a pullback in the days that followed, it's still up 15% since I made the recommendation.
Indeed, big gains can be had in the oil patch, but not for things that are fleeting, like the attack on Saudi oil facilities.
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It takes more than an isolated event to make money consistently in the market.
From that perspective, what really makes oil exciting today is the fundamentals.
The U.S. economy is powering forward. The rest of the world will follow suit thanks to aggressive monetary policy at global central banks.
However, fears of a deepening recession have kept investors on the sidelines. That's especially true in the oil sector.
Prices are materially depressed on many oil stocks, despite their strong fundamentals.
As oil prices rise for solid underlying reasons, those fundamentals are only going to get stronger.
Strong fundamentals combined with projected growth means many oil stocks are screaming buys.
The Money Morning Stock VQScore™ system has done the hard work for us and has identified the best oil stocks to buy trading at attractive prices.
In the oil patch, there are several stocks that have attained the highest score available.
That means it's time to buy, especially in advance of a global economic recovery.
Here are the best ways to play rising oil prices this week…
Tags: Oil Prices