There are two conflicting trends in the oil market right now when you look at the big picture and the near-term outlook. And whether there is value in oil stocks probably depends on your view of these two issues. Here are some things to think about as you assess the value opportunity in oil stocks.
Oil prices fell dramatically in 2020, with a production spat at OPEC and the demand declines stemming from the coronavirus pandemic actually pushing West Texas Intermediate crude below zero for a brief moment. Today that looks like ancient history, with prices having materially recovered. First-quarter earnings for oil companies were pretty good and Q2 numbers should be equally strong, if not even better.
Image source: Getty Images.
Source Fool.com