Should You Buy Oil Stocks Right Now?

In the midst of the coronavirus market crash of 2020, oil stocks have cratered. Crude oil prices have fallen almost 70% since early January. At recent prices, both Brent and West Texas futures haven't been this low in 20 years. Simply put, the 2020 oil crash is unprecedented in both its swiftness and severity.

But oil is still the black blood that flows in the veins of the global economy. Even as renewable energy supplants gasoline, diesel, and other refined hydrocarbons, they will remain important fuels to power transportation and generate electricity for many years to come.

So, with oil prices at record lows, and essentially every stock in the oil and gas sector now trading at massive discounts to their prices only a couple of months ago, should investors be buying? This is the very moment when we should heed Warren Buffett's advice to be greedy when others are fearful, right? After all, some of the most diversified and best-known oil companies have seen their stocks get crushed over the past couple of months. Shares of Royal Dutch Shell (NYSE: RDS.A)(NYSE: RDS.B), ExxonMobil (NYSE: XOM), and Phillips 66 (NYSE: PSX) have lost between 40% and 56% of their value.

Source Fool.com