Oil sector facing challenges with price decline and trade tensions

From Yahoo Finance: 2025-04-15 13:37:00

The energy sector is struggling, with oil prices plunging 14.5% since the start of 2025. OPEC+ increasing supply and trade tensions between the US and China are contributing factors. This could impact US oil production growth, with prices needing to be between $61 and $70 per barrel to be profitable.

Global oil consumption is expected to increase by 900,000 b/d in 2025, down from initial forecasts. The US oil industry is concerned about trade policies and tariffs affecting costs. As a result, many industry players are cutting back activity to maintain investor payouts.

Despite challenges, billionaires like Warren Buffett remain bullish on the oil sector. EOG Resources, Inc. (NYSE:EOG) is one of the top oil stocks according to billionaires. The company reported mixed results in Q4 2024, with revenue down 12.14% YoY. EOG plans to invest $6.2 billion in 2025 for production growth.

EOG Resources, Inc. (NYSE:EOG) ranks 10th on the list of best oil stocks to invest in according to billionaires. The company maintains a strong balance sheet, with $7.1 billion in cash. While EOG has potential for growth, AI stocks may offer higher returns in a shorter time frame, making them a more promising investment option.

Read more: Is EOG Resources, Inc. (EOG) the Best Oil Stock to Invest in According to Billionaires?