Oil Crash 2020: 5 Experts Share Their Best Advice for Investing in Oil Stocks Right Now
The oil industry is one of the world's biggest and most important. Nearly all global travel still depends on refined fuels, and the coronavirus pandemic has brought global transport to a halt. As a result, oil demand is down 30% and expected to remain below peak levels for many months to come. At the same time, global oil giants have been very slow to cut output, resulting in record levels of oil and refined products in storage that's only likely to keep growing. Production is expected to exceed demand for months and months.
As a result, oil stocks have been hit harder than any other. The Energy Select Sector SPDR ETF (NYSEMKT: XLE) is down 42% from the 2020 high, while the SPDR S&P Oil & Gas Exploration & Production ETF (NYSEMKT: XOP) has lost half its value.
The oil industry has some tremendous opportunities for investors to profit, but with more tough times ahead, it's also full of risk. So what's an investor to do? We asked five veteran investors with experience following the energy industry to weigh in with their thoughts. Here's what they had to say.
Source Fool.com