Oversold, oil is creating a buy opportunity in beaten-down oil stocks.

Now trading at $70.02, oil is down considerably from its April high of $86.18. From here, we could see oil gush back to $80 near-term on rising demand in China and the potential for tighter oil supply in Europe this winter. 

Also, according to Phil Flynn, senior analyst with Price Futures Group, as quoted by Reuters, “Hedge funds are starting to buy on tightness of supply in European markets this winter.”

With the potential for higher oil prices, investors may want to jump into incredibly oversold oil stocks, including these three.

Occidental Petroleum (OXY)

With OXY sitting at $46.02, which it hasn’t seen since the start of 2022, there’s speculation Warren Buffett’s Berkshire Hathaway could pick up more shares. For one, OXY is now cheaper than it was when Buffett was adding millions of shares.  And two, with Trump coming back, we could see more U.S. drilling and lower corporate tax rates.

Exxon Mobil (XOM)

Exxon Mobil is now excessively oversold, too.

Trading at $106.42, it’s sitting at strong support dating back to June. The oil giant is also over-extended on RSI, MACD and Williams’ %R. From its last traded price of $106.42, we’d like to see XOM initially retest $123 again near-term.