Better Buy: ExxonMobil vs. Chevron Corporation
The oil and natural gas sector is getting hammered today by a painful combination of factors. There are already companies succumbing to bankruptcy, and there will likely be more before this down cycle is through. However, U.S. energy giants ExxonMobil (NYSE: XOM) and Chevron (NYSE: CVX) are both likely to survive. Is one a better buy than the other?
Low oil and natural gas prices aren't actually a new thing. Years of production growth in the United States have been upending the global supply/demand dynamics for quite some time, which put downward pressure on oil prices. To combat this, OPEC had been orchestrating production cuts. Earlier this year, however, Russia and OPEC got into a tiff over cuts and started a price war. That pushed commodity prices in the energy sector sharply lower.
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Source Fool.com
