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Why Oil Still Matters (and Why It's Worth a Look)

  //stocks-investing.news-articles.net/content/202 .. oil-still-matters-and-why-it-s-worth-a-look.html
  Published in Stocks and Investing on Monday, December 15th 2025 at 10:49 GMT by The Motley Fool

The Best Oil Stock to Invest $150 In Right Now – A Quick Digest

In a recent MSN Money feature titled “The best oil stock to invest $150 in right now”, financial writers walk readers through the latest dynamics of the global oil market and zero in on a single company they believe offers the strongest upside‑plus‑defence combo for a modest $150 investment. The article was written for the casual investor who wants a clear, data‑driven recommendation without having to sift through endless research reports.

1. Why Oil Still Matters (and Why It’s Worth a Look)

The article opens with a brief recap of the oil industry’s current state:

• Price rebound – Crude prices have climbed steadily since the mid‑2023 dip, reaching $88–$90 a barrel in October. This resurgence is driven by higher demand from the EU (which is cutting back on renewables for now) and tighter supply from OPEC‑plus countries that have been reluctant to ramp up output.
• Geopolitical tailwinds – Ongoing tensions in the Middle East and the resurgence of production in the U.S. shale belt have created a “supply shock” narrative that fuels optimism for higher margins.
• Sustainability concerns – Even as the world pushes toward decarbonisation, the oil sector remains a vital component of the global energy mix. This is especially true for sectors like aviation, shipping, and petrochemicals that still depend on crude oil derivatives.

With these macro‑drivers in place, the article argues that the industry is poised for a medium‑term upside, but the key is picking a stock that can translate those price gains into solid shareholder returns.

2. The Stock That Stood Out

After analysing more than a dozen energy names, the writers single out Enbridge Inc. (ENB) as the top pick. While the piece covers a handful of other names (e.g., Exxon Mobil, Chevron, and ConocoPhillips) in brief “also worth a look” sections, Enbridge receives the most thorough treatment. The reasons are three‑fold:

a. Proven Asset Base

Enbridge operates the world’s largest pipeline network, with more than 45,000 miles of lines that transport crude, natural‑gas liquids (NGLs), and refined products across North America. The company’s flagship assets include the Trans‑Canada pipeline and the Northern Gateway. Because pipelines are “real‑estate” assets that can be valued at a multiple of their transportation capacity, Enbridge’s balance sheet shows strong, recurring cash flow that is largely insulated from commodity price swings.

b. Solid Dividend Profile

The article highlights Enbridge’s 7.4% dividend yield, which is one of the highest among U.S. oil & gas majors. With a dividend payout ratio hovering around 50% of earnings, the company has ample room to either maintain or modestly raise its dividend, making it attractive for income‑oriented investors. The “Dividend Growth” graph in the piece shows Enbridge has raised its dividend for 21 consecutive quarters.

c. Strategic Expansion and ESG Upside

Enbridge’s ongoing projects—such as the U.S. Mid‑West pipeline network expansion and the investment in “clean‑fuel” pipelines for renewable hydrogen—position the company to benefit from a shift toward cleaner energy while still earning revenue from traditional oil transport. The article quotes a former Enbridge analyst who noted that the firm’s capital allocation plan already earmarks 15% of CAPEX for low‑carbon projects, suggesting the company is not purely a fossil‑fuel relic.

3. How to Make the $150 Work

The writers provide a simple step‑by‑step plan for a small‑wallet investor:

1. Open a brokerage account – Many retail platforms (E*TRADE, Robinhood, Fidelity, or Schwab) offer zero commission trading for U.S. stocks.
2. Buy fractional shares – Since Enbridge trades at roughly $110–$120 per share, a $150 budget will get you around 1.3–1.4 shares. Most brokers allow you to purchase fractions.
3. Set a stop‑loss – The article recommends a 15% stop‑loss to protect against sudden price swings, especially given the cyclical nature of the sector.
4. Reinvest dividends – Enbridge’s dividends can be set to automatically reinvest, giving the investor compounding benefits over time.

4. The Risks: Not All “Safe” Stocks Are Risk‑Free

No investment is devoid of risk, and the article acknowledges several potential downside scenarios:

• Regulatory headwinds – Stringent pipeline regulations in the U.S. or Canada could increase operating costs or delay expansion projects.
• Oil price volatility – While Enbridge’s revenue model is somewhat insulated, extreme swings could affect the overall demand for pipeline transport.
• Transition risk – As the world accelerates its move toward renewables, traditional oil‑transport businesses might see slower growth.

Readers are advised to keep these in mind and, if necessary, use a diversified approach that includes other energy names or ETFs for broader exposure.

5. Other Oil & Gas Stocks Mentioned

While Enbridge leads the charge, the article also briefly lists:

• Exxon Mobil (XOM) – For its strong cash flow and history of dividend growth.
• Chevron (CVX) – Noted for its balanced portfolio of upstream and downstream operations.
• Kinder Morgan (KMI) – Highlighted for its aggressive pipeline expansion in the U.S.

These names are flagged as “alternative options” if an investor wants to diversify within the oil space without adding too much risk.

6. How the Recommendation Fits Into the Broader Market Narrative

The article cites a few other MSN Money pieces that paint a broader picture:

• “Oil Prices Near 2018 Highs: What That Means for Investors” – Discusses how a sustained price increase could drive margins across the sector.
• “Shale Production Hits 20% YoY Growth” – Highlights how U.S. shale output is set to remain a key supply driver.
• “The Green Transition: Energy Companies in 2025” – Provides context on how oil companies are pivoting toward renewables and hydrogen.

These additional readings reinforce the article’s thesis that the oil sector remains a resilient investment, even in an era of rapid climate change.

7. Bottom Line

In a concise, data‑rich format, the MSN Money feature argues that Enbridge Inc. offers the best risk‑adjusted opportunity for a modest $150 investment in the oil sector right now. Its strong asset base, high dividend yield, and strategic shift toward cleaner energy give it a unique position among peers. While no investment is risk‑free, the article outlines clear ways to enter the position with a small budget, manage downside, and potentially benefit from the next wave of oil price appreciation.

Whether you’re a seasoned investor or just starting out, the piece provides a solid, easy‑to‑understand recommendation that aligns with both short‑term income goals and long‑term portfolio growth.