Could Nordic American Tankers Be a Millionaire-Maker Stock?
The global oil market is in a messy situation. Since early this year, there was an expectation that oil demand would fall as COVID-19 emerged in China. Saudi Arabia saw an opportunity to rebalance the global oil market and started an all-out production push to take market share from everyone else. Needless to say, at the time, nobody in the energy sector expected the COVID-19 outbreak to turn into a global pandemic that would bring travel and much of the world's economy to a standstill.
As a result of the pandemic, oil demand cratered to levels we have not seen in decades, tanking prices and leaving the world awash in excess crude even as producers slashed their output. This has absolutely laid waste to many oil stocks. Even after recovering somewhat from their 2020 lows, year to date, the Energy Select Sector SPDR ETF (NYSEMKT: XLE) is down 36%, the SPDR S&P Oil & Gas Exploration & Production ETF (NYSEMKT: XOP) is down 45%, and the SPDR S&P Oil & Gas Equipment & Services ETF (NYSEMKT: XES) is down 63%. Meanwhile, the S&P 500 is off by about 8.7%.
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Source Fool.com