The 8 Best Oil Penny Stocks Under $1 To Buy For April 2024

Right now, traders scramble to invest in companies benefiting from growing oil demand. If you want to jump into this market, check out our picks for the best oil penny stocks to buy now. 

It’s true that penny stocks, including oil stocks, come with a particular set of risks because of factors like low liquidity and volatility.

But if you’re willing to take on these risks, some solid gains could be made in the near future by investing in companies that produce oil and gas products.

Oil prices are taking off, and the spike in price shows no signs of slowing anytime soon.

Take a look at our top picks if you want to trade oil penny stocks for less than $1.

Best Oil Penny Stocks Under $1 to Buy Right Now

Gran Tierra Energy Inc. (NYSEAMERICAN: GTE)

If you’re on the lookout for the best oil penny stocks, we recommend starting your search with Gran Tierra Energy Inc.

Gran Tierra Energy Inc is an oil penny stock that has been trading for over ten years now and offers a myriad of resources in crude oil in Latin America.

It has projects across Colombia, Peru, and Argentina, with reserves estimated to be over 600 million barrels.

As per its Q2 financial report, the company anticipates that it could generate more than $100M–$120M in free cash flow in the current semester due to a production increase throughout its portfolio in Colombia.

This company’s stock has been on our radar since it was trading at $0.60, and it’s been trading above $1 for about a month.

We’ll keep an eye on it a little longer before we retire it from our list.

Petroteq Energy (OTCMKTS: PQEFF)

Petroteq Energy Inc is a small-cap company that has been trading off the OTCMKTS since 2013.

Its main office is in Canada, but it operates primarily as an oil and gas exploration company out of Utah, USA. 

The company is now developing its proprietary technology, CORT, a sustainable oil sands extraction process.

Petroteq’s shareholders might find comfort knowing that the company has ties with Petroamerica Corp, a subsidiary of Petroleos de Venezuela SA — one of the biggest government-owned oil companies in South America.

When oil prices are climbing above $84 for WTI, and above $85 for Brent, Petroteq is liberating locked oil in US oil sands for as low as $22 per barrel.

United Energy Corp. (NASDAQ: UNRG)

United Energy Corp is a small-cap oil and gas company that has been in the oil industry for over 20 years now.

Formerly known as Aztec Silver Mining Co., it currently owns approximately 300,000 acres of leasehold and 1,100 miles of natural gas pipelines across the US.

The company announced a major acquisition in October 2022 when it purchased 51% of properties within the Cherokee Basin (Oklahoma).

CEO Brian Guin stated, “This acquisition gave United Energy 100% control of its operations and was an essential step in our developmental plans and growth in shareholder value.”

This may be an indication of future growth for this oil penny stock and potentially vast profits for its investors.

Best Crude Oil Penny Stocks Under $1

Permex Petroleum Corp. (OTCMKTS: OILCF)

Permex Petroleum Corp. is a US-based oil and gas company that’s been drilling oil wells for over two decades.

The company is currently exploring oil reserves in the Rocky Mountains, North Texas, South Texas, the Gulf Coast region, Nevada and New Mexico.

In October, 3,300,000 stock options were granted to several of its company directors and officers, and they’ll have the opportunity to exercise securities at $0.24 per share through October 6, 2031.

In addition, the company announced its acquisition of certain assets associated with oil production from Breedlove “B” Field in Martin County, Texas.

Permex enhances its financial and operational strength through this acquisition by acquiring a high-quality, low decline (5%) oil asset base that can generate robust free cash flow as it implements additional workover and drilling programs.

PetroTal Corp. (OTCMKTS: PTALF)

PetroTal Corp is a small-cap company that focuses on the appraisal and development of crude oil in Peru, South America.

Despite recent turmoil with the indigenous groups in Peru, the company recently stated that it expects to end 2021 with an average production of between 10,000 and 11,000 barrels of crude per day.

PetroTal’s stocks have grown by over 28% from last year, surpassing the market average of 27%.

Combined with an increase in crude prices across the board and the company’s potential increase in production, PetroTal looks like it is on the right track.

Oil Exploration Penny Stocks Under $1

Viking Energy Group Inc. (OTCMKTS: VKIN)

Viking Energy Group Inc. is an exploration and production company that focuses on finding, purchasing, and producing oil and gas resources.

The majority of its earnings come from the selling of oil and gas.

Through collaborative agreements with other businesses and independently, the company acquires stakes in low-cost, long-life oil-producing properties that have future development potential and create positive cash flow.

In August 2021, the company announced its purchase of a majority stake (⁓60.5%) in Simson-Maxwell Ltd, a global provider of energy-related products and services.

Viking Energy Group also announced that it had signed an Exclusive Intellectual Property License Agreement with ESG Clean Energy, LLC, covering ESG’s intellectual property relating to stationary electric power generation.

88 Energy Ltd (OTCMKTS: EEENF)

88 Energy Ltd is an Alaskan-focused oil exploration and appraisal firm.

It has estimated reserves of over 1.6M barrels and looks to expand its current portfolio through further exploration.

The company is most active in its operations in the North Slope area of Alaska.

88 Energy Ltd’s recent Merlin-1 appraisal successfully confirmed the presence of oil (NO12 and NO18) in the Cretaceous Nanushuk Formation.

Top Oil Penny Stocks to Watch Out For

Seadrill Limited (OTCQX: SDRLF)

Seadrill Limited is an offshore drilling company that extracts oil and gas in shallow and ultra-deep waters.

The company is well-equipped to drill in both benign and harsh environments, which affords it more opportunities to extract oil and gas than some of its competition.

In the second half of 2021, Seadrill reported that its operating revenues increased by 23% — up from $452 to $556 million.

While many of its numbers are trending in a positive direction, it’s important to note that Seadrill recently restructured as it emerged from a Chapter 11 bankruptcy in early February 2022.

The company attributed its bankruptcy to hardships brought on by the COVID pandemic.

A setback like this could scare many away, but if Seadrill can maintain its momentum, investors holding for the long term could be rewarded down the road.

Should You Buy Oil Penny Stocks?

As energy consumption increases across the world, so will the need for oil.

This could spell good things for the value of oil stocks in the long term, but the market has had its ups and downs over the last few years.

So if your portfolio can withstand the risks involved with trading oil penny stocks, you might want to consider investing in them.

More on Investing in Oil by Trading Penny Stocks

It is unlikely that the world will move on from being dependent on oil anytime soon. 

Oil is still a commodity that everyone will use, even if there are new sources of energy emerging today, like solar or hydrogen.

So oil company stocks trading for less than $1 could be a great way for your portfolio to tap into this market.

However, while investing in the oil industry has the potential for solid profits, you still need to perform extensive due diligence before picking up any shares, including the picks on our list.

Where to Buy Oil Penny Stocks Under $1?

For stocks under a dollar, many of these picks will need to be bought on an over-the-counter market.

Although Robinhood does not permit OTC trading, it’s a great place for new investors on the stock market.

Some of our picks are dipping in and out of the $1 mark, like Gran Tierra Energy Inc., so they could be available for trade on Robinhood.

Webull is an excellent alternative to Robinhood for stock trading and comes with some great research tools.

To find more stock picks, you can also read our guide to the best penny stocks on Webull. 

How to Scan for Hot Oil Penny Stocks

When investigating the next oil penny stocks to add to your portfolio, you’ll want to turn to an excellent stock screener for assistance. Screeners stay up to speed on market happenings, equipping you with the latest information in real-time.

These tools can save all the energy you’d need to spend searching for news on your own. They’re rarely free, but more than make up for any cost in the time you get back..

One of our favorites is StocksToTrade, designed by active day traders who know precisely what to look for. The comprehensive charting tools make data easy to decipher, while the news scanner funnels the information you need to one convenient place.

Oil Penny Stocks: Advantages and Risks

Keep these advantages and risks in mind when adding oil penny stocks to your portfolio:

Advantages

Huge Growth Potential – Oil penny stocks offer massive potential for gains, considering their low price point. A single successful property or innovation can send prices through the roof.

Low Entry Price – A penny stock trades for less than $5, meaning the cost of entry is quite low. A few hundred dollars can purchase several shares, leaving room for big profits if the price goes up.

Unique Opportunities – In the oil industry, lower-priced stocks sometimes represent up-and-coming technologies that aren’t yet mainstream. Here, you’re able to get in on the ground floor of an innovation that could some day change everything we know about the industry.

Risks

Supply and Demand – Oil companies must always worry about the ebbs and flows of supply and demand. This same fear trickles down to investors, who may find themselves in trouble during particularly dry spells.

Regulatory Changes – The government has a lot to say about the oil industry and the potential for alternative fuels. It’s never clear when a shift will take place from one to the other that can sink share prices fast.

Hard to Analyze – All penny stocks are a challenge to analyze, especially those without much history. Those that trade on over-the-counter markets are even more challenging to figure out due to lax reporting requirements.

Oil Penny Stocks: Final Words

Demand for oil and gas has shown sustained growth over the decades.

This is unlikely to change anytime soon, especially with spiking oil demands in international markets.

With the pandemic subsiding, now could be a great time to start investing in cheap oil stocks.

If you want to get the most out of the oil industry’s growth and don’t mind volatility, then penny oil stocks could your entry point in the market.

Oil Penny Stocks FAQ

Read along for answers to the most commonly asked questions about oil penny stocks.

What Is the Best Gas Stock To Buy Right Now?

PetroTal Corp. (OTCMKTS: PTALF) has been on a good run for the last year, with share prices increasing over 50%.

The price has been fairly stable for about a month now, so if you feel that it has the potential to regain its momentum, you might want to check it out. 

What Is the Best Oil Company To Invest In?

United Energy Corp. (NASDAQ: UNRG) has been performing well in the last month, with shares increasing in value by about 48%.

If you don’t mind hopping on board to ride the trend before it stabilizes, now might be a good time to get in.

Are Penny Stocks Worthless?

Penny stocks are very volatile, which is why many investors shy away from them, opting for more stable investments.

At the end of the day, there could be money to be made in penny stocks, but this market is difficult to predict and highly speculative.

So while penny stocks aren’t worthless, you could lose a lot on your way to developing a solid strategy.

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