Is Now the Time to Buy Oil Stocks?
Clean energy is rising as the go-to source for powering the world. But it isn't there yet, which means that oil is still an important part of the global energy supply. What are investors to do with this long-term-versus-short-term dilemma? Here are some things to consider before you make the decision to buy or avoid oil stocks.
Burning oil generates carbon and contributes to global warming. That's a fact that can't be ignored, and one of the main reasons why the world is looking to limit its future use. In October 2020, the International Energy Agency (IEA) stated that growth in oil demand is likely to end by 2030 and then flatline. However, it added, "In the absence of a larger shift in policies, it is still too early to foresee a rapid decline in oil demand." The main reason for both trends is that demand is still likely to increase in developing markets as they move up the socioeconomic ladder, and oil remains an important feedstock in the chemicals space. In other words, oil is far from dead.
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Source Fool.com
