Will Big Oil Stocks Bounce Back in 2021?
When people look back at 2020, it will almost certainly be viewed through the lens of the coronavirus pandemic. A lot will get lost in the haze, but the severe hit the oil industry took because of the novel illness will probably be a key highlight. For investors looking to find bargains, meanwhile, the current pain could set up longer-term gains. Will those come in 2021?
There's no way to sugarcoat 2020 for energy companies. It was really awful -- but that didn't start in 2020. There's a bit more history here. The backdrop really goes back to the start of the onshore U.S. fracking boom. As the United States became an increasingly important global producer of oil and natural gas, the world's supply/demand balance tipped toward oversupply. That was being managed by OPEC and its partners, which had been cutting their production.
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Source Fool.com
