The risk factor present on oil concerns the bearish trend that has characterized its performance so far. A trend that, according to the latest prices, could slow down or even turn around. Which would make black gold an opportunity to invest in.
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Forecasts on the energy sector and oil
Analysts’ forecasts on the energy sector and on oil speak of a weakening offer of crude oil, especially on the OPEC front. If the current trend continues, it is very likely that we could see an upside. Also because the keystone of a possible US-China agreement reigns over everything that would restart the world economic system.
Now is a good time to invest in stocks?
In light of the above, what strategies do experts suggest to make money with oil? Even though oil has remained above critical levels of $ 50 a barrel for some time, the energy sector has been a major disappointment this year. While the S&P 500 has risen more than 20% since early 2019, and the major indices have reached an all-time high, the energy sector, as measured by the Energy Select SPDR ETF, is essentially at a standstill. This is even more astonishing if we consider that oil has been at the center of great news which, in theory, should have had a strong impact on prices in the long term. Instead, apart from a sudden and short rise after the drone attacks on some plants in Saudi Arabia by Iran, nothing has changed.
Stocks and shares to buy to make money with oil
Among the oil optimists are Merrill Lynch experts. The US bank remains very positive on some oil companies. These are Buy-rated stocks that offer stability and optimal dividends. The first ConocoPhillips (COP) stock with solid upside potential and rising dividends. Conoco’s investment portfolio ranges from North American shale to European oil to plants in Asia and Australia as well. Other good news: the next quarterly dividend increase (currently the dividend yield is 2.92%) by as much as 38%. In addition, the leaders also confirmed the start of a $ 3 billion buyback strategy in 2020. Another title to invest in to make money with oil is Exxon Mobil (XOM). Rated as one of Wall Street’s best energy choices, it is considered a safe long-term investment for more conservative investors. In addition to the numbers from a positive quarter, the stock also offers a dividend yield of 4.87%.
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