Should You Buy Oil Stocks Right Now?
In April of 2020, when futures contracts for West Texas Intermediate (WTI) crude oil briefly traded for minus $37, the thought of an energy crisis like the ones in the 1970s or 2008 seemed unimaginable. Now, there's chronic pain at the pump as a gallon of gasoline exceeds $5 throughout much of the U.S.
With pain comes opportunities, though -- or so it would seem if you're bullish on oil and, therefore, on the drillers that get it out of the ground. As President Biden declares that ExxonMobil (NYSE: XOM) "made more money than God this year," investors might wonder whether it's a good time to add some petroleum producers to their portfolios.
It's a fair question, albeit not an easy one to answer. The bull and bear camps both have compelling arguments. And surprisingly enough, your final decision could depend less on the oil-price trajectory than on time-tested valuation metrics.
Source Fool.com
