Are Energy Stocks Ready for a Revival?
Energy stocks have largely been out of favor for several years now. A global glut of oil and gas supply sent energy stocks reeling. The situation went from bad to worse because of demand destruction due to the COVID-19 pandemic. However, recent developments provide a glimmer of hope in this grim situation. Here are three reasons why it could be a great idea to consider energy stocks right now.
The double whammy of squeezed demand in an oversupplied market marred energy stocks in recent years. However, things now look upbeat on both fronts. The U.S. Energy Information Administration expects the global consumption of petroleum products to increase to 98.8 million barrels per day (bpd) in 2021. Though still lower than an average of 101.5 million bpd in 2019, the expected consumption in 2021 is significantly higher than the average of 92.9 million bpd in 2020. Of course, rising coronavirus cases in the U.S. and several European countries could delay the demand recovery.
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Source Fool.com
