Best Oil and Gas Penny Stocks to Watch Now (2025)

Donald Trump’s second presidential term has brought unprecedented enthusiasm to the energy sector—and that includes oil and gas penny stocks. His promises to “drill, baby, drill,” withdrawal from the Paris Agreement, and plans to refill the Strategic Petroleum Reserve has resulted in A TON of volatility. For traders, these market trends provide a unique opportunity to profit from short-term price movements.

Here are five penny oil stocks I’m watching closely:

Top Oil and Gas Penny Stocks to Watch in 2025

The oil and gas penny stocks I’m watching in 2025 are:

• NASDAQ: USEG — U.S. Energy Corp. — The Oil Penny Stock Spiker That Survived an Offering
• AMEX: TPET — Trio Petroleum Corp. — The Oil Discovery Play
• NASDAQ: EONR — EON Resources Inc. — The Renewable Energy Crossover
• AMEX: HUSA — Houston American Energy Corp. — The Low-Float Oil and Gas Penny Stock
• AMEX: INDO — Indonesia Energy Corp. Ltd. — The Geopolitical Catalyst Play

Oil and gas penny stocks in 2025 stand out due to rising energy prices, increased demand for oil, and Trump’s deregulatory policies. U.S. Energy Corp. (NASDAQ: USEG), Trio Petroleum Corp. (AMEX: TPET), and EON Resources Inc. (NASDAQ: EONR) have all spiked since Trump took office, and it might not be the last time they do so.

These oil and gas companies are speculative and highly sensitive to market sentiment, policy changes, and the broader trends in the energy industry. With Trump’s energy-first policies and volatile oil prices, now is an ideal time for active traders to build oil sector penny stocks watchlists and prepare to act.

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U.S. Energy Corp. (NASDAQ: USEG) — The Oil Penny Stock Spiker That Survived an Offering

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U.S. Energy Corp. (USEG) recently hit a 52-week high and grabbed trader attention with news of its helium discovery and compliance with Nasdaq listing requirements. But then it diluted—its $10.5 million new share offering was a classic crappy penny stock move. These offerings are usually short-term cash grabs rather than money to be used for something that will grow the business, and they punish existing shareholders.

You don’t have to be in love with this stock’s future profitability to trade it for a profit…

Check out how I traded this stock for a $1k profit here!

Key Insight:
USEG’s offering at $2.65 per share adds over 4 million new shares to the float, diluting existing shareholders. While the company claims the proceeds will fund industrial gas projects and new operations, this kind of penny stock banditry often results in short-lived spikes before prices trend lower. Traders should treat USEG as a purely speculative play, focusing on intraday volatility and avoiding extended holds. Watch for price action around the $2.65 offering level for potential dip-buy setups, but approach with caution and discipline.

Trio Petroleum Corp. (AMEX: TPET) — The Oil Discovery Play

Trio Petroleum Corp. recently surged after announcing a significant oil discovery in California. This news has made this energy company a focal point for traders seeking volatility in the oil and gas sector. The company’s ability to capitalize on its assets has bolstered investor interest, making it a potential mover as oil prices remain a hot topic.

Here are the catalysts that made TPET an inauguration week winner!

Key Insight:
TPET’s recent surge underscores the importance of news-driven catalysts in oil penny stocks. Keep an eye on any updates related to its California operations, as additional positive announcements could drive further spikes. Watch for support levels near previous consolidation zones to identify low-risk entry points.

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EON Resources Inc. (NASDAQ: EONR) — The Renewable Energy Crossover

EON Resources has captured attention with its strategic acquisition in the renewable energy space, creating a unique narrative in a traditionally fossil-fuel-driven sector. While its primary focus remains oil and gas, this diversification has opened new growth avenues, making EONR a hybrid play.

Take a deeper look into EONR’s momentum here!

Key Insight:
EONR’s recent activity demonstrates how policy shifts and diversification can create volatility. Traders should monitor price levels for breakout setups, especially if the stock consolidates after its recent move. Positive sentiment around renewable energy could provide an additional tailwind.

Houston American Energy Corp. (AMEX: HUSA) — The Low-Float Oil and Gas Penny Stock

HUSA is known for its extreme volatility, with previous spikes driven by geopolitical tensions and supply chain disruptions. Despite its beaten-down status, the stock has a history of delivering sharp, short-term moves. This makes it an intriguing watchlist candidate for traders looking for breakout opportunities.

Key Insight:
HUSA’s low float amplifies its price movements, creating significant opportunities for intraday trading. It may take a catalyst or substantial volume to trigger another spike, so focus on technical levels and news developments. Past price action suggests that once it starts moving, it can run quickly.

Indonesia Energy Corp. Ltd. (AMEX: INDO) — The Geopolitical Catalyst Play

INDO is no stranger to volatility, having spiked 1,800%* in 2022 during the Russia-Ukraine conflict. More recently, it reacted strongly to tensions in the Middle East, reaffirming its status as a stock to watch during geopolitical unrest. INDO’s price action is closely tied to global oil supply and demand dynamics.

Here are my notes from INDO’s last surge!

Key Insight:
INDO’s sensitivity to geopolitical events makes it a prime candidate for traders looking to capitalize on global news. Monitor oil prices and geopolitical developments for potential catalysts. Consolidation after a spike can provide lower-risk entries for short-term trades.

* Past performance does not indicate future results.

What Are Oil Penny Stocks?

Oil penny stocks are shares of small-cap companies operating in the oil and gas industry that trade for less than $5 per share. These stocks represent independent exploration companies, development initiatives, and gas production firms. They’re attractive to traders due to their volatility and upside potential during market-moving events.

These stocks thrive in an active trading market fueled by industry trends, geopolitical catalysts, or shifts in energy policy. Unlike larger oil companies with consistent revenue, oil penny stocks tend to rely heavily on speculative market sentiment and immediate catalysts for their movements.

Advantages of Oil and Gas Penny Stocks

Oil penny stocks offer traders access to low-priced heavy oil production companies, natural gas exploration firms, and emerging infrastructure assets. Their micro-cap status and smaller floats often result in sharper price movements compared to larger peers in the commodities sector.

For those who follow industry news and energy prices, these stocks present advantageous opportunities for short-term gains. By focusing on active stocks with low floats and timely news catalysts, traders can capitalize on the sector’s inherent volatility.

Risks of Investing in Oil and Gas Penny Stocks

The oil penny stock sector is highly speculative, with risks that include poor financial metrics, over-reliance on market sentiment, and inconsistent cash flow. Many companies face challenges in sustaining daily production and may resort to dilutive practices to raise capital.

Unlike larger oil companies, these stocks often lack consistent revenue growth or robust balance sheet health. Traders must conduct diligence checks, focusing on key assets, financial statements, and the potential for eventual profitability. Always use risk management strategies to protect your account.

Key Takeaways

• Focus on stocks with low floats and strong news catalysts.
• Use technical levels like support and resistance to plan trades.
• Stay disciplined and avoid chasing spikes.

With Trump’s energy policies creating a tailwind for the oil sector, now is a great time to add these stocks to your watchlist and be ready to act when opportunities arise.

This is a market tailor-made for traders who are prepared. Oil penny stocks thrive on volatility, but it’s up to you to capitalize on it. Stick to your plan, manage your risk, and don’t let FOMO drive your decisions.

These opportunities are fast and unpredictable, but with the right strategy, you can make them work for you.

I recommend that you pay close attention to the first days of this possibly historic bull market.

If you want to know what I’m looking for—check out my free webinar here!

FAQ

Are Oil Penny Stocks Attractive?

Oil penny stocks attract traders due to their volatility, low entry costs, and correlation with energy prices. They can generate quick profits but require disciplined trading strategies.

Are Oil Penny Stocks a Good Investment?

For traders, oil penny stocks can provide opportunities for short-term gains. However, as investments, they are high-risk and should be approached with caution due to their speculative nature and potential for losses.

What Are the Best Small Oil Companies?

The best small oil companies for trading include those with low floats, active trading markets, and strong news catalysts. USEG, TPET, and INDO are current favorites due to their upside potential.

What Are the Best LNG Stocks to Buy?

LNG stocks tied to natural gas properties and infrastructure assets can be strong plays during bullish energy trends. Companies with consistent demand for LNG and strong balance sheet health are particularly attractive to traders.