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Best Oil Stocks ASX
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As the global crude market enters a period of intense capital discipline, the Australian oil sector has emerged as a powerhouse of resilience and strategic returns for high-net-worth investors. While some fear lower price projections, institutional-grade data tells a different story. Despite lower price projections, major oil stocks (such as Woodside and Santos) remain essential for income-focused portfolios due to their ability to generate strong cash flow even at lower price points.
Sharewise bridges the gap between private investors and the institutional deal flow usually reserved for the elite. Continue reading below to learn about the best oil stocks on the ASX, the different types of oil stocks, and some investment tips on Australian energy stocks.
Backed by results
+26.49%
Our ASX return for FY25
vs. Market Return of 10.21%
+24.61%
Our US return for FY25
vs. Market Return of 13.33%
+13.35%
Our ASX return for FY24
vs. Market Return of 7.80%
Download your free oil stocks report now.
Why Invest in ASX Oil Stocks?
ASX oil stocks represent a critical opportunity for capital growth and income that most retail investors simply overlook. While many wait for the "perfect time," savvy investors understand that not selling is never going to make an investor money, and holding onto stagnant assets means missing the massive shifts currently occurring in the oil sector. As a world-renowned producer, Australia offers a premier selection of oil majors focused on capital discipline and aggressive shareholder returns.
The reality is that oil remains a vital "bridge fuel" for global energy security, and the window to secure positions in companies with proven, audited results is narrowing. Waiting for media hype often leads to entering at the peak; instead, professional investors use data-driven technical and fundamental analysis to identify entry points before the public even sees them. By investing in the best ASX oil stocks now, you leverage Australia’s world-class reserves to drive the superior portfolio performance needed to outpace inflation and protect your long-term wealth.
Performance Matters.
At Sharewise, every stock report is built on the same principles that have driven our portfolios to outperform the market — data, discipline, and depth of research.
Over the past year, our analysts have delivered strong results across the Australian market:
+26.49%
Our ASX return for FY25
vs. Market Return of 10.21%
+13.35%
Our ASX return for FY24
vs. Market Return of 7.80%
+12.90%
Our ASX return for FY23
vs. Market Return of 8.63%
Past performance is not indicative of future performance.
How these stock reports can help you.
Markets move fast — and in the 2026 energy landscape, new opportunities emerge every day as the sector balances global supply pressures with a pivot toward energy security.
Our stock reports cut through the noise, helping you identify quality companies backed by strong fundamentals, capital discipline, and credible management.
Each report is curated by the Sharewise analyst and research team, combining proprietary data, rigorous financial analysis, and clear investment theses — giving you the insights to make confident, well-informed decisions in a market currently focused on shareholder returns and free cash flow.
Inside the Oil Stock Report
Discover oil companies operating at the intersection of global energy security, the LNG "tsunami," and the ongoing transition to low-carbon efficiency.
Each profile includes:
- Investment thesis — crafted by our analysts, outlining why we believe each company could outperform and the key factors driving our view
- Company overview — what they do, their projects, and production outlook
- Fundamentals — valuation metrics, financial health, and operating performance
- Financial statements — revenue, profit trends, and balance sheet strength
- Major shareholders — institutional, insider, and strategic holders to note
Investors often ask, "Are oil stocks a good investment?" The answer lies in the robust performance and strategic positioning of top ASX energy players in 2026. Companies like Woodside Energy (ASX: WDS) and Santos (ASX: STO) have consistently demonstrated operational resilience and provided significant shareholder returns. Woodside Energy, Australia's largest listed oil producer, is a pioneer in the LNG industry and recently expanded its portfolio through the acquisition of high-value assets in Western Australia.
World-Class Resource Base
Woodside Energy Group Ltd (ASX: WDS) stands out among ASX-listed oil stocks due to its significant potential for future returns. Known for its world-class resource base and robust LNG production capabilities, Woodside has consistently shown strong performance trends. In recent years, the company has seen steady growth in its market valuation, driven by strong global energy demand and strategic operational mergers. With ongoing expansion projects and a focus on low-cost, sustainable production, the future outlook for Woodside Energy Group remains highly promising, making it a compelling choice for investors.
Emerging Oil Stocks
Santos Ltd (ASX: STO) is gaining significant attention on the ASX due to its promising potential for future returns. This company focuses on high-value natural oil production, positioning itself for substantial growth as the transition to lower-carbon fuels accelerates. Santos has demonstrated impressive performance trends, with a steady rise in stock value supported by diversified asset portfolios and strategic growth, and advancing its decarbonisation initiatives suggests a bright future, making it a strong contender among top oil stocks on the ASX.
Consistent Growth In Value
Ampol Ltd (ASX: ALD) stands out on the ASX for its significant potential for future returns. With a strong focus on fuel refining, distribution, and the emerging convenience retail sector, Ampol has shown consistent growth in its stock value. The company’s integrated supply chain and strategic shift towards EV charging infrastructure are driving long-term investor confidence. As the Australian transport sector evolves, Ampol is well-positioned to capitalise on these shifting trends, making it a compelling choice for investors looking out for the best oil stocks on the ASX.
What Our Clients Are Saying!
Investment Tips For Australian Oil Stocks
Success in the 2026 oil sector requires moving beyond retail speculation and "hold and hope" strategies. To achieve superior portfolio performance, you must treat your capital with institutional-grade rigour.
Stop timing, start tracking
Market timing is notoriously difficult; instead, use data-led technical analysis to identify oil entry points with the highest probability of growth before the public sees them.
Cut losses fast
Never let a losing trade erode your wealth. Strict stop-loss parameters help to exit underperforming positions, protecting your capital from the emotional bias that sinks DIY portfolios.
Focus on verified returns
Don’t settle for selective "best picks." Only trust verified, audited results against market benchmarks to measure true performance.
Diversify globally
The ASX is just 2% of the global market. Diversifying into US shale or global majors provides a vital hedge when domestic cycles are flat.
Your portfolio, our expertise. Don't let unmanaged risk dictate your financial future.
Ready to secure your position in the oil sector? Sharewise provides the institutional-grade research and proactive oversight you need to act on high-conviction oil opportunities before they disappear.
Our Return vs. The Market
Our performance for the current financial year compared against the market benchmark.
Past performance is not indicative of future performance.
How Sharewise Helps You Choose the Best Oil Stocks.
Institutional Quality Research
Make informed decisions with confidence.
Dive into comprehensive stock-specific analysis, focused on all companies, from blue-chip to micro-cap. Our extensive research, led by Chief Investment Office Rabbi (Rabih) Ahmed, and support by our team of equity research analysts, ensure you have a deep understanding of the market landscape to invest with clarify and assurance.
Account & Portfolio Management
Your investments, our dedicated attention.
With a dedicated stockbroker, you can rest easy knowing your investments are under expert care. A Sharewise Managed Account allows your advisor to manage your portfolio on your behalf, ensuring strategic decision-making, timely buy and sell actions, and seamless trade execution. We conduct quarterly portfolio reviews and strategy sessions with you so you can enjoy a hands-off investment process.
Dedicated Investment Manager
Your partner in navigating the markets.
Our investment managers are licensed professionals with expert knowledge of the markets. They monitor stocks and market trends daily, managing risk while optimising your portfolio. Focused on maximising returns, they ensure your investments are actively managed and aligned with your objectives.
Timely Stock Recommendations
Never miss an opportunity.
Backed by in-depth research and a clear investment thesis, our buy and sell recommendations go beyond simple tips. Each recommendation is a strategic insight built on real company data, financial fundamentals, and advanced technical analysis. We focus on ensuring you understand exactly what you're investing in and why, delivering actionable trade opportunities with clear rationale.
Professional Risk Management
Stay focused, even in volatile markets.
We take emotions out of investing. Our investment managers use research, data and market signals to guide decisions. By staying disciplined and responsive to market changes, we help investors remain focused when markets move quickly.
Access to Client Portal
Never miss an opportunity.
Our exclusive client portal gives you 24/7 access to our daily market research, in-depth stock analysis, and buy/sell recommendations. Whether you're at home or on the go, you can stay informed with up-to-date insights and make well-informed decisions. Our user-friendly platform ensures you’re always connected to the latest market trends, putting expert guidance at your fingertips.
Oil Stock Market Trends Over The Years
Reflecting on the 2021–2025 period, the Australian oil sector has shifted from pandemic-era volatility to a strategic focus on energy security and capital discipline.
- Post-Pandemic Rebound (2021–2022): Following a 48% drop in the ASX 300 Energy index during early 2020, the sector saw a sharp recovery as global demand returned and supply tightened due to underinvestment.
- Geopolitical Energy Shock (2022–2023): Russia's invasion of Ukraine drove oil prices to highs of US$93/barrel, repositioning energy stocks as a "bearish market hedge" and leading to a 37.5% outperformance of the ASX energy sector in late 2022.
- Transition Recalibration (2024–2025): Oil majors began balancing long-term net-zero goals with short-term profitability. Companies like BP and Shell scaled back some renewable spending to prioritise "capital discipline" and shareholder value.
- Domestic Oil Focus: Regulatory reforms were adopted by the Australian government in early 2026 to secure domestic supply amidst declining conventional oil reserves, which fell by 10% between 2018 and 2023.
- The LNG "Supply Wave": A predicted 50% surge in global LNG exports between 2025 and 2030 will likely reshape pricing dynamics, with Australian exporters like Santos and Woodside well-positioned due to their proximity to high-demand Asian markets.
Your Investment Journey to Wealth Creation.
Discover how Sharewise helps you build lasting wealth through expert advice, market intelligence, and proactive portfolio support - every step of the way.
Step 1: Start Your Journey with Confidence
Speak with one of our experienced investment managers to understand how we work and how we can support your investment objectives. Whether you’re new to investing or looking to take the next step, we’ll meet you where you are.
Step 2: Navigate the Markets with Clarity
Access our global market updates and institutional-grade research designed to help investors make more informed decisions across all conditions.
Step 3: Act on Research-Backed Ideas
Access timely buy and sell recommendations based on technical and fundamental analysis - helping you act with conviction when opportunities arise.
Step 4: Portfolio Oversight
Stay connected to your investments with ongoing oversight from your Sharewise investment manager. We help you monitor your portfolio, provide general advice based on market conditions, and keep you informed about opportunities that may impact your holdings.
Step 5: Build Resilience Through Risk Management
We support you in identifying and managing risk through research-led insights and regular updates - helping you stay focused, even when markets shift.
Step 6: A Journey of Long-Term Success
Your investment journey doesn’t end with one trade. We’re here for the long haul - providing continuous insights, opportunities, and support to help you stay on track over time.
Types of Oil Companies on the ASX
- Upstream (Exploration & Production - E&P): These specialists, such as Beach Energy (BPT) and Karoon Energy (KAR), focus exclusively on extracting oil from proven basins. Their performance is tied directly to technical data and commodity price shifts, offering high-growth potential for performance-driven investors.
- Midstream (Transport & Storage): These players manage the infrastructure, including pipelines and storage facilities. They provide essential energy security and are often preferred by retirees or SMSF trustees seeking income stability and transparent reporting.
- Downstream (Refining & Marketing): Players like Ampol (ALD) and Viva Energy (VEA) process crude into petrol and diesel. Profitability is driven by operational margins and domestic fuel demand rather than raw oil prices, offering a different risk profile for diversification.
- Integrated Giants: Institutional leaders like Woodside Energy (WDS) and Santos (STO) manage the entire journey from exploration to global export. These large-cap stocks are often core holdings for those seeking the confidence of an institutional-grade portfolio with consistent performance.
Your Success in the Market Starts Here.
At Sharewise, our approach to investing is built on clarity, precision, and strategy. By combining technical and fundamental analysis, we uncover opportunities and manage risk with a data-driven mindset. Our diversified approach ensures portfolios remain balanced, resilient, and adaptive to global market shifts.
Whether you’re navigating volatility or pursuing growth, our insights are designed to simplify complexity and empower informed decisions.
Data-Driven Decisions
Our investment philosophy combines technical and fundamentalanalysis to uncover opportunities and manage risk with precision. Every recommendation is backed by data, research, and professional expertise — ensuring each move is informed and strategic.
Superior Strategy
We take a diversified, multi-asset approach to investing, balancing risk and reward across global markets. This strategy is designed to enhance returns, manage volatility, and protect your portfolio through all market cycles.
Resilient and Adaptable
Markets evolve — and so do we. Our team proactively adjusts strategies in response to global economic and political shifts, positioning portfolios to capture growth during bullish phases and remain resilient during downturns.
Effortless Portfolio Oversight
Your dedicated advisor manages the day-to-day performance of your portfolio while you remain in control of all trading decisions through our non-discretionary structure. This balance of professional management and client approval provides transparency, accountability, and confidence.
Strategic Risk Management
We carefully balance position sizes, correlations, and volatility to safeguard your investments. Through ongoing, proactive risk assessment, we maintain portfolio resilience and stability across changing market conditions.
Curated Market Insights
Our in-house analysts deliver institutional-grade research and stock recommendations, giving you access to the same calibre of insight used by professional investors.
Market Classification of ASX Oil Stocks
Classification on the ASX is primarily driven by market capitalisation (company size) and investor profile (growth vs. income). While large-cap companies lead the industry with transparency and scale, small-cap explorers offer a "high ceiling" for potential gains through aggressive exploration. Successful oil investing requires moving beyond speculation to a data-led strategy that matches specific assets to your financial goals.
| Classification | Investor Profile & Goal | Leverage/Volatility | Key Financial Characteristic | Recent Stock Examples (Oil) |
|---|---|---|---|---|
| Dividend/Blue-Chip (Large-Cap) | Goal: Reliable passive income and capital preservation. Profile: Retirees or SMSF Trustees seeking stability. | Medium. Generally more buffered against daily oil price swings due to global infrastructure. | High payout ratios (up to 60%+ of FCF); strong franking credits for Australian investors. | Woodside Energy (WDS), Santos (STO), Ampol (ALD). |
| Growth Stocks (Mid-Cap) | Goal: Capital appreciation through project delivery. Profile: Self-Directed Investors seeking performance. | High. Tied to the execution of major oil production milestones and resource upgrades. | Profits are typically reinvested into new production assets and exploration rather than dividends. | Beach Energy (BPT), Karoon Energy (KAR). |
| Small-Cap/Speculative | Goal: Exceptional returns from new discoveries. Profile: Experienced Investors looking for high-conviction "alpha". | Extreme. Highly sensitive to drilling results, capital raises, and shifting market sentiment. | Often pre-revenue; requires institutional-grade research to separate data-led potential from market hype. | Strike Energy (STX), Tamboran Resources (TBN), Horizon Oil (HZN). |
| Value Stocks (Undervalued) | Goal: Capture growth by buying at a discount to intrinsic value. Profile: Pragmatic professionals focused on ROI. | Variable. Performance depends on professional market "re-rating" the stock to its verified fair value. | Low Price-to-Earnings (P/E) ratios; often overlooked by major funds before a catalyst event. | Santos (STO), Yancoal (YAL)* |
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Frequently Asked Questions.
Are oil stocks a good investment?
Oil stocks offer a compelling tactical opportunity for 2026 as the industry balances global supply shifts with the critical need for energy security. While market sentiment is currently cautious due to projected surpluses, many ASX energy majors are trading at attractive valuations relative to their strong free cash flow and dividend potential. For investors seeking a reflationary hedge and consistent income, oil companies remain a vital component of a diversified portfolio.
What are the best oil stocks on the ASX to buy?
The 'best' stocks are always those that align with your specific risk tolerance and long-term financial goals. At Sharewise, we closely monitor market leaders like Woodside Energy (WDS) for its dominant LNG footprint and Santos (STO) for its high-margin production and strategic joint ventures. We also see value in mid-cap specialists like Beach Energy (BPT) and downstream refiners like Ampol (ALD) and Viva Energy (VEA), which provide essential infrastructure and domestic energy supply.
What is the outlook for the oil industry in Australia and globally?
The global outlook for 2026 is defined by a transition toward a "value-driven" environment as new global LNG supply comes online. While crude prices may face downward pressure due to increased OPEC+ production and growth in South American output, Australian producers are leveraging high-efficiency digital technologies to protect their margins. Domestically, the Australian market continues to benefit from its proximity to high-demand Asian markets and a robust regulatory framework focused on supply security.
How risky are oil stocks?
Every investment carries inherent risks, particularly in the energy sector where share prices are sensitive to global commodity price cycles and geopolitical instability. While established players offer significant stability, factors such as fluctuating fuel demand, regulatory changes, and environmental liabilities like oil spills can impact performance. It is essential to understand that past performance is not a guarantee of future results and to always conduct thorough research before committing capital.
What should I consider before investing in oil stocks?
Prior to investing, you should evaluate your individual risk appetite, timeframe, and whether you are seeking capital growth or steady dividend income. Key factors to monitor include the "breakeven" production costs of specific companies, their debt-to-equity ratios, and how they are adapting to the ongoing global transition toward lower-carbon energy. Consulting with a licensed advisor can help ensure your energy exposure fits within your broader strategic asset allocation.
How can I start investing in oil stocks?
To get advisory help for starting your investment in ASX oil stocks, follow these steps:
- Consult with a Sharewise advisor to discuss your investment goals and explore suitable oil stocks on the ASX.
- Open a brokerage account with Sharewise, providing you access to the ASX market.
- Deposit funds into your Sharewise account to get started.
- With expert guidance, search for and purchase oil stocks that align with your strategy.
- Monitor your investments regularly and stay informed about market trends with ongoing support from your Sharewise advisor.
Getting advisory help at Sharewise ensures you make well-informed decisions when investing in oil stocks on the ASX.
What is included in this report?
Our comprehensive Oil Stock Report provides institutional-grade analysis designed to give you a clear view of the leading energy players. Each report contains a detailed investment thesis from our research team, company-level production outlooks, and essential financial metrics like valuation ratios and balance sheet strength. We also include data on major institutional and insider shareholders so you can see where the "smart money" is positioned.
Who is this report for?
This report is designed for serious Australian investors, including self-managed super fund (SMSF) trustees, time-poor professionals, and retirees seeking reliable dividend income. Whether you are a self-directed investor looking for professional validation or someone seeking more proactive portfolio management, our insights help simplify complex market data into actionable steps.
How often is this report updated?
To ensure you are always making decisions based on current data, our core research and model portfolios are reviewed and updated regularly. We provide daily morning rundowns covering global market dynamics and weekly in-depth analyses to reflect the latest production results, geopolitical shifts, and earnings reports from major producers.
