4 Reasons to Own Oil Stocks
There's a saying on Wall Street that you should buy when there's blood in the streets, which pretty much describes the situation in the energy patch today. The sector is deeply out of favor because of a massive supply/demand imbalance and a long-term global shift toward cleaner alternatives. So why would you want to own oil and natural gas stocks? Here are four reasons.
There are very clear problems in the energy sector today. The most immediate is that oil and natural gas prices are so low that it's hard for drillers to make money. In fact, at one point in early 2020 a key U.S. oil benchmark briefly fell below zero. While prices have improved, they remain historically low. The economic shutdowns used to slow the early spread of the coronavirus and a long-term shift toward cleaner alternatives are both factors.
Image source: Getty Images.
Source Fool.com
