2 Oil Stocks Worth Buying as Crude Holds Near $70 a Barrel

Crude oil prices have fallen sharply from their April peak of $112.95 a barrel to around $70 a barrel, a decline of nearly 40%. The reopening of the Strait of Hormuz, a key chokepoint for global oil shipments, has eased supply concerns and contributed to the sell-off in oil stocks. However, some analysts see value in select oil companies that are well-positioned to benefit from long-term demand trends. The drop has also been influenced by ample OPEC+ spare capacity, which the group could bring online if needed, and a slowdown in China's marginal demand as its economic recovery falters. Meanwhile, the US Strategic Petroleum Reserve (SPR) remains at historically low levels after last year's releases, limiting the government's ability to intervene.

For energy traders, the drop in crude prices has widened the Brent-WTI spread and shifted the futures curve into contango, signaling ample near-term supply and encouraging storage plays. Refiners are enjoying improved crack spreads as input costs fall, boosting margins for gasoline and diesel production, while upstream producers face margin compression due to lower realized prices. The current price level may attract bargain hunters, but the market remains sensitive to geopolitical developments and OPEC+ production decisions, particularly the coordination between Saudi Arabia and Russia to manage output. Check NowPrice's fuel page for real-time pricing on crude and refined products.

Looking ahead, the focus will be on global inventory data and the pace of strategic reserve rebuilding by major importers. If countries accelerate stockpiling, it could provide a floor under prices, though backwardation in some parts of the curve suggests near-term tightness. Key levels to watch include $65 support and $75 resistance for WTI. The next OPEC+ meeting and US jobs data will also influence near-term direction, as will any shifts in the contango/backwardation structure that signal changing supply-demand balances.