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CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 77% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
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5 Examples of Oil Penny Stocks

Oil penny stocks are a popular choice among investors due to their affordability. Here are 5 examples to look at.

Marcel Deer - Writer for Fortrade
By Marcel Deer
a man taking a selfie in front of a tv
Edited by Dragan Stevanovic

Published May 19, 2024.

oil barrel with a penny stock market graph

Despite the ongoing geopolitical and macroeconomic challenges, the oil and gas industry is in good health. Oil demand is set to grow by 2.3 million barrels per day compared to 2023 and exceed the 100 million barrels per day mark for the first time in history.

In this environment, penny stocks appeal to investors due to their low share prices—which are usually below $10 in the oil and gas sector. Oil penny stocks are usually represented by an exchange-traded fund (ETF) such as the Invesco S&P SmallCap Energy ETF.

However, penny stocks' inherent volatility could cause significant losses over a short period, so it's important to remain cautious.

Note: Fortrade offers the ability to trade the price changes of penny stocks with CFDs and NOT to buy/sell ownership of penny stocks themselves.

1. Kosmos Energy Limited

Kosmos Energy Ltd is an oil and gas exploration business based in Dallas, TX, focusing on deep-water development solutions. They currently conduct operations in the Atlantic Margins region, with other critical project assets in Western Africa, Mauritania, and Equatorial Guinea.

Kosmos Energy's market capitalization value is around $2.66 billion; the company saw a massive increase of 233.96% in 2022.

a line graph showing the market's kosmo energy ltd

Source: Google

While energy prices are rising, Kosmos Energy continues to invest in growth facilities and market penetration. Combined with Kosmos' global investments, their penny stock could yield a potential profit in favourable conditions.

» Besides sustainability, there are 5 other emerging technologies in 2024

2. Ultrapar Participacoes SA

Brazil's fourth-largest corporation is one of the lesser-explored NYSE-listed oil penny stock companies since it belongs to a developing economy.

Due to its fuel distribution operations across Latin America, Ultrapar Participacoes CA has grown into one of the world's 500 largest corporations. Its earnings have increased by more than 230% in the past year.

Ultrapar has expanded its operations over the last decade to become Brazil's most significant fuel operator. Several parts of the business process crude oil procurement, distribution, and logistics across its subsidiaries.

stock market chart of Ultrapar Participacoes

Source: Google

3. Ardmore Shipping Corp

As sustainability gains importance in the oil and gas industry, Ardmore Shipping remains one of the most innovative oil companies in the penny stock market. Remarkably, it manages to do this while maintaining a historic record of zero spills.

The company puts a significant effort into making its operations more environmentally friendly.

To that end, Ardmore continues to invest in upgrading its 27-strong fleet of vessels to become the most sustainable in the world while growing across the oil logistics arena.

a line graph showing the stock of Ardmore shipping company

Source: Google

As global economic activity picks up, Ardmore's performance would likely receive a boost again following the significant dip it experienced in Q2 2023.

» We also share our top 4 types of derivates in Forex trading.

4. NGL Energy Partners LP

NGL Energy Partners is a midstream company offering services to the crude oil industry. The company increases supply to the natural gas and renewable energy sectors, too.

After the COVID-19 hit in 2020, NGL Energy Partners stock dropped significantly. In August 2021, the stock dropped again despite the initial surge in revenue, due to massive losses in earnings.

a line graph showing NGL market stock value

Source: Google

However, NGL has emerged as one of the top-performing oil penny stocks in 2023. It has consistently delivered strong results with a notable 76% increase in revenue compared to 2022.

With investments and improved returns year-on-year, along with the latest debt refinancing transactions and amends, NGL is likely to remain a steady riser in the world of volatile oil penny stocks.

5. Helix Energy Solutions Group Inc

One of the biggest global players in the oil penny stock sector, Helix Energy Solutions Group provides well-intervention services to companies in the deep-water oil industry.

The company deploys intervention vessels around the globe, including the Asia Pacific, the North Sea, West Africa, and the Gulf of Mexico.

Helix recently announced an asset-based revolving credit facility with a wide consortium of banks.

a line graph of helix energy solutions stock over the past 5 years

Source: Google

This move has substantially improved Helix's credit outlook and made it a strong option in the oil penny stock sector.

» Discover how to use CFD trading analysis to make better trading decisions.

Oil Penny Stocks on the Rise

With oil prices on the rise again, it is a good time to explore the oil penny stocks market.

Many big players focus on innovation and sustainability, so plenty of excellent long-term options are available on the market at accessible prices.

However, as always, make sure to conduct thorough research and a full risk assessment on all your instruments before committing to them.

» Find out how to start trading penny stocks.