The oil industry of the world is one of the most lucrative avenues for investors, as oil and gas are required for most of the other dependent industries. The oil and gas industry of India has developed rapidly and is making a huge comeback to support the Indian economy. Oil stocks are the perfect investment choice for you in the stock market in 2024.
But which oil stocks are worth buying this year? And why should you buy them?
Let’s go ahead and explore the best oil stocks to buy in 2024.
What Are Oil Stocks?
Oil stocks are shares of oil and gas companies that work primarily in the field of refining and selling products made from crude oil. These stocks can also be those of those companies that are operating businesses that mainly link to the oil and gas industry. For example, if there’s a private sector company that exports oil by using their ships, then the shares of that company on the stock market will be called oil stocks.
Some companies are also listed on the stock market that explore oil opportunities. Transportation firms that mainly deal in the oil transportation business through pipes and vehicles can also be oil stocks.
In India, oil stocks are gaining popularity in 2024 and there are many impressive oil stocks to buy in 2024. Stay tuned to learn about them in the next section.
Top 5 Best Oil Stocks To Look In India: 2024
- Reliance Industries Limited (RIL): Best Oil Stocks
Reliance Industries is currently based in Mumbai and they’re one of the biggest oil companies in the world. Headed by Mukesh Ambani, Reliance has the world’s biggest oil refinery in Jamnagar, Gujarat. If you’re planning to buy the best oil stocks from Reliance, then you surely go ahead without any second thought.
They also have experience dealing with the renewable energy sector, like solar and wind power plants. They have refining units that mainly work for petroleum, hydrocarbon exploration and much more. The oil stocks of Reliance are also performing pretty well and are hovering around their 52-week mid-highs, mostly.
- Gas Authority Of India Limited (GAIL)
GAIL was founded in 1984 and was set up with the aim of using the natural gas resources of the country efficiently. GAIL is an oil stock, of which 51.45% of the shares are held by the Indian government. The company now has a huge network of oil pipelines, gas processing plants, and petrochemical factories. In 2024, GAIL is one of the best oil stocks to buy, as their future growth is expected to be pushed by the Indian government.
They have also set up offshore operations in other countries, such as Singapore, China, and the USA. If you’re thinking of purchasing oil stocks from GAIL, you’ll not be disappointed.
- Petronet LNG (Limited)
Founded in 1998, Petronet LNG mainly deals with the import of crude oil and LNG. They primarily operate in the natural gas business and manage some large ports in the country, like Kochi LNG Terminal, Solid Cargo Port Terminal and Dahej LNG Terminal. These ports have a large intake capacity of 50 lakh metric tonnes of oil products per year.
It is one of the best oil stocks to buy in India in 2024. The stock prices of Petronet LNG are pretty stable too.
- ONGC: Best Oil Stocks
ONGC is a well-known name in the Indian oil industry, as it is the largest oil company in the PSU sector. It is the largest manufacturer of crude oil and natural gas in the country and has operations spanning all four boundaries. ONGC produces more than 1.26 million barrels of crude oil every year and then refines its own refineries as well. Over 71% of crude oil in India is extracted by ONGC.
It owns around 35 oil and gas assets in 15 countries around the world. In 2024, ONGC oil stock is one of the best ones to buy and watch out for. You can definitely invest in the oil stocks of ONGC.
- IOCL
Based in New Delhi, Indian Oil Corporation Limited (IOCL) is involved in several activities, such as the manufacture of petroleum and natural gas, refining crude oil, distributing petroleum products and natural gas and laying pipelines. Its domestic assets consist of an oil and gas refining capacity of 70.05 MMTA as well as over 34,000 retail outlet sites (fuel pumps), which make IOCL well capable of serving customers around India.
It is spread out throughout the nation with many branches, including seven key product areas: the refining segment (Indian oil refineries), research and development, pipelines, exploration and production, marketing, petrochemicals, explosives, and cryogenics. It is one of the best oil stocks to buy in 2024.
Final Thoughts On The Best Oil Stocks
Oil stocks are a pretty good investment category in 2024 in India, as the oil sector is going through rapid development. Both the Indian government and private sector companies are investing in oil exploration and research. If you’re planning to buy the best oil stocks this year, then Reliance, GAIL, Petronet LNG, IOCL, and ONGC are the best options for you.
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FAQs
What are oil stocks?
Oil stocks represent shares of companies involved in the oil and gas industry, including exploration, production, refining, and distribution.
Why invest in oil stocks in 2024?
Investing in oil stocks in 2024 offers high potential for growth due to the rapid development of India’s oil sector.
What factors should I consider when choosing oil stocks?
Consider factors like financial health, exploration activities, refining capacity, and market share when choosing oil stocks.
Which are the best oil stocks in 2024?
The best oil stocks to invest in 2024 include Reliance Industries, GAIL, Petronet LNG, ONGC, and IOCL.
