2 Oil Stocks to Buy Even If Oil Prices Keep Slumping
Oil prices have been surprisingly lower than expected this year. Crude was recently in the low $70s, down double digits from the beginning of the year. That's a far cry from the calls that oil would return to the triple digits at some point in 2023, fueled by tightening supplies and rebounding demand.
While lower oil prices will affect the cash flows of all producers, some are in a better position to handle weaker pricing than others because of their low cost of supply. Because (NYSE: CVX) and ConocoPhillips (NYSE: COP) are among the lowest-cost producers, they can generate a tremendous amount of cash in the coming years even if oil prices head lower. That makes them great oil stocks to buy even if you're worried about even lower prices.
Chevron has built an advantaged portfolio over the years by investing in low-cost of supply regions. That strategy enables the oil company to earn high returns on capital employed, positioning it to generate growing free cash flow even at lower crude prices. It also provides the company with lots of downside protection:
Source Fool.com
Chevron Corp. Stock
With 25 Buy predictions and not a single Sell prediction Chevron Corp. is an absolute favorite of our community.
With a target price of 179 € there is a positive potential of 20.21% for Chevron Corp. compared to the current price of 148.9 €.
