On Friday, April 4, oil futures reached multiyear lows following China’s response to the tariffs imposed by the Trump administration. This sparks fear of a fall in demand for oil amid a full-blown trade war. The US benchmark for oil prices, West Texas Intermediate (WTI), fell over 7% to close at $61.99 per barrel and Brent crude futures dropped more than 6% to settle at $65.58. Crude has not traded at these levels since 2021.
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Crude losses worsened as China announced it would impose additional tariffs of 34% on US goods. This announcement came as a response to President Trump’s levies, which include increased duties on China-made imports.
President Trump’s tariffs saw financial markets react strongly and crude oil prices sinking as traders assessed the potential impact of a trade war on demand. Energy-related stocks were set to extend losses after dragging the market down with sell-offs in the Dow, S&P 500, and Nasdaq.
Crude losses also accelerated because of a decision by the Organization of Petroleum Exporting Countries and its allies, OPEC+, to increase supply approximately three times more than expected starting in May.
Angie Gildea, KPMG US energy leader, said that markets are still “digesting tariffs” and that the combination of higher oil supply and concerns about a weaker global economy is putting downward pressure on oil prices. She pointed out that this could lead to a new chapter in a volatile market.
Although energy was not included in the latest tariffs announced by the Trump administration on Wednesday, April 2, the escalation of a global trade war could hurt oil demand.
With this background in mind, let’s take a look at the 11 best American energy stocks to buy now.
A modern skyscraper illuminated in orange and blue, representing the energy sector of the US equity market.
Our Methodology
To compile our list of the 11 best American energy stocks to buy now, we used stock screeners from Finviz and Yahoo Finance to find the largest energy companies. We sorted our results based on market capitalization and picked the top 25 American stocks. Next, we focused on the 11 stocks most favored by institutional investors. Data for the hedge fund sentiment surrounding each stock was taken from Insider Monkey’s Q4 2024 database of more than 1,000 elite hedge funds. Finally, the 11 best American energy stocks to buy now were ranked in ascending order based on the number of hedge funds holding stakes in them as of Q4 2024.
Why do we care about what hedge funds do? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
11 Best American Energy Stocks to Buy Now
11. Targa Resources Corp. (NYSE:TRGP)
Number of Hedge Fund Holders: 61
Targa Resources Corp. (NYSE:TRGP) is one of the largest independent energy infrastructure companies in North America. Through its assets, the company delivers natural gas and natural gas liquids (NGLs) to domestic and international markets. Targa Resources Corp. (NYSE:TRGP) ranks among the best American energy stocks to buy now.
The company is making moves to expand its infrastructure and meet growing market demands. In its Gathering and Processing (G&P) segment, Targa Resources Corp. (NYSE:TRGP) is building a number of natural gas processing plants, including the Pembrook II, East Pembrook, and East Driver plants in the Permian Midland. In the Permian Delaware, the company is constructing the Bull Moose II and Falcon II plants. Targa Resources Corp. (NYSE:TRGP) is also building a 150 MBbl/d Train 11 fractionator in Mont Belvieu. In February 2025, the company announced new projects to address the growing production and infrastructure needs of its customers. These include the Delaware Express pipeline expansion project which is expected to commence operations in Q3 2026. Another initiative is the construction of Train 12, a new 150 MBbl/d fractionator in Mont Belvieu, which Targa Resources Corp. (NYSE:TRGP) expects will commence operations in Q1 2027.
10. EOG Resources, Inc. (NYSE:EOG)
Number of Hedge Fund Holders: 62
EOG Resources, Inc. (NYSE:EOG) is an American energy company that focuses on the exploration, development, and production of crude oil and natural gas. The company has proved reserves in the United States and Trinidad. EOG Resources, Inc. (NYSE:EOG) is one of the best American stocks to buy now.
In 2024, the company generated $5.4 billion of free cash flow and returned $5.3 billion to shareholders through a combination of dividends and share repurchases. EOG Resources, Inc. (NYSE:EOG) also managed to reduce average well costs by 6% across its multi-basin operations in 2024. For 2025, the company announced a capital plan with an aim to grow oil production by 3% and total production by 6%. EOG Resources, Inc. (NYSE:EOG) expects total expenditures for the year to range from $6 to $6.4 billion. The capital plan includes drilling and completing 605 net wells across the company’s high-return multi-basin portfolio. Additionally, the company will also be funding strategic infrastructure projects and international opportunities, including exploration projects in Trinidad and Bahrain. EOG Resources, Inc. (NYSE:EOG) entered into a strategic participation agreement with Bapco Energies in Bahrain to evaluate a natural gas exploration prospect with planned drilling activity in 2025.
