3 Major ASX Oil Stocks Just Hit Rock Bottom: Buy Now?

When oil prices dive to rock-bottom levels, the best traders know that opportunity can strike. With oil supply risks rising amid new sanctions on Russian exports and the U.S. government rebuilding reserves, the stage may be set for a strong rebound in ASX-listed oil stocks.

This week, the experts at Wealth Within, Filip Tortevski and analyst Pedro Benales, reveal three standout Australian oil companies showing potential for a major turnaround. They explain why technical setups, not just headlines, determine the best time to buy. 

Why Oil is Set for a Rebound

Oil is trading around $65 per barrel, up from a recent low of $55, driven by global market tightening and new U.S. commitments to refill its depleted strategic reserves. Meanwhile, sanctions on Russian producers and possible secondary tariffs on nations such as China, Turkey, and India threaten to reduce available supply.

According to Pedro, “We’re seeing both supply and demand factors support higher prices, a tightening market combined with additional buying from the U.S. looking to rebuild reserves.”

For investors, this creates ideal conditions to target quality Australian oil producers with strong fundamentals and solid technical setups.

Karoon Energy (ASX: KAR), Preparing for a Powerful Breakout

Among ASX oil stocks, Karoon Energy is showing one of the most intriguing technical structures. After a prolonged correction, the price has established firm support near $1.25, suggesting a potential trend reversal is underway.

Analyst insights:

• Karoon has formed a strong base pattern aligning with historical low-volume accumulation zones.
• Increased trading volume and renewed investor interest indicate early signs of a reversal.
• The next major upside targets lie at $2.68 and potentially as high as $4.80–$5.00, based on past cycle peaks.

Filip explains, “The smart move is timing the confirmation. Macro factors may tell one story, but the chart tells another, and the chart is showing momentum ready to shift upward.”

If you want to learn how to accurately time entries like this, Wealth Within’s accredited Trading courses provide detailed systems to identify momentum shifts, risk levels, and ideal entry signals.

Woodside Energy (ASX: WDS), The Leader of the Pack

Australia’s largest oil and gas producer, Woodside Energy, continues to hold firm technical support near $20, with a clean resistance structure near $27. This $7 corridor has been key since early 2024 and could define the next breakout phase.

Pedro notes, “Woodside’s volume has spiked around these zones, and a confirmed break above $27 could target the $38–$40 zone, signalling a return to longer-term bullish momentum.”

However, Filip cautions that simply “bottom-picking” large-cap names like Woodside can be risky without a structured approach,

“You need a clear plan, entry rules, stop-losses, and exit management. That’s where consistent profitability comes from.”

Investors can master position sizing, money management, and professional exit strategies through the Diploma of Share Trading and Investment, an ASIC-approved, nationally recognised qualification.

Viva Energy (ASX: VEA), The Unexpected Dark Horse

The third pick, Viva Energy, has drawn analyst attention following its mixed Q3 2025 operating update. While retail fuel sales declined, refining margins surged 76%, and signs indicate a stronger Q4 as Geelong Refinery operations normalise.

Despite weaker current results, the stock’s technical structure tells a more optimistic story:

• Viva has built a stable multi-year base around $1.75 a level that provided support in 2018, 2021, and again in 2025.
• The next key resistance area sits near $2.60, leaving a potential upside of more than 45% if momentum continues.
• Increasing participation volume suggests institutional activity ahead of possible Q4 strength.

Pedro adds, “Charts are forward-looking, fundamentals lag. If you wait for the next strong headline, the smart money will already be selling.”

The Technical Edge, Timing is Everything

From small-caps like Karoon to stalwarts like Woodside and Viva, the biggest profits come from precision entry and disciplined risk management, not emotion.

As Filip underscores, “You can’t rely on the news. Traders who succeed know how to read price action, not just react to it.”

To learn how to develop this skillset and interpret market behaviour with confidence, explore Wealth Within’s Short Course in Share Trading or the Advanced stock trading course, both designed to help you identify “real” opportunity, not hype-driven moves.

Final Thoughts, Opportunity Knocks for Energy Investors

With Australian oil stocks trading near multi-year lows, timing is critical.

• Karoon is aligning perfectly for a breakout.
• Woodside may be ready to resume its long-term uptrend.
• Viva Energy presents a prime short-term play with strong recovery potential.

For disciplined traders, these setups may mark one of 2025’s best trading opportunities. But knowing when to act, and when to stay patient, is what separates winning trades from costly mistakes.

If you’re ready to elevate your skills, Wealth Within’s range of government-accredited share trading education programs will teach you how to trade profitably and confidently in all market conditions.

Continue Your Market Journey

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Important information

This content is provided for educational purposes only and is not personal financial advice. It does not take into account your objectives, financial situation or needs. Consider seeking advice from a licensed professional before acting on this information. Markets involve risk; past performance is not a reliable indicator of future performance.