Oil Stocks to Buy Amid Record Low Prices: RichTV Live

oil stocks to buy

Since providing his list of top stocks to watch in April 2020, Rich has been focusing a lot on oil and gas. Ever since OPEC and Russia started an oil price war in early March, the sector has plunged into chaos. While this might give existing oil investors a stomach ulcer, it opens the door for plenty of new investors to enter at record-low prices. That’s why Rich is breaking down some of the top oil stocks to buy or watch today.

“The rest of the market is up right now, but oil is down big. It’s down to like $25 right now,” he says. “I do believe oil’s going to go way, way higher—even if it goes a little lower at first, the upside from here is crazy.”

Let’s break down the biggest news affecting the oil sector today, and profile some stocks to keep your portfolio gassed up.

Oil Stocks Fell Further Today, but the Upside is Looking Good

Earlier today, Saudi Arabia—the primary power behind OPEC—and Russia delayed a scheduled meeting. The meeting was to discuss output cuts that would likely help reduce global oversupply. This is an exceptionally important issue now, as the coronavirus pandemic continues to limit demand.

Enter Your E-mail Address To Subscribe

* indicates required
 

“The excitement for the meeting has now turned to negativity,” Rich explains. “The price of oil shot back down as a result.”

Rich goes on to say that this presents investors with a great buying opportunity. With crude oil currently at an 18-year low, investors will likely flock to the sector quickly. This, in turn, will drive the price of oil back up, meaning anyone perusing a list of oil stocks to buy should act quickly if they want to take advantage of low prices.

To understand just how significant the oversupply problem currently is, there are reports that companies are running out of space to store oil. Specifically, storage facilities, refineries, terminals, ships, and pipelines are approaching capacity. According to Goldman Sachs, that kind of oil glut hasn’t happened since 1998.

Oil Stocks to Buy Today

While Rich remains tight-lipped on the oil stocks he’s purchased, others are making their picks widely known. Writing for the Motley Fool, Jason Hall recommends Phillips 66 (NYSE:PSX), as it isn’t actually involved in producing oil. Along with the company’s strong balance sheet, Hall says that PSX has “the right kinds of operations to avoid the worst of the downturn” and can even find ways to profit.

Of course, when a sector gets turbulent, many investors will find shelter among the blue chip stocks. That means oil’s biggest names, ExxonMobil (NYSE:XOM), will likely see value added. Even as these companies potentially cut their outlook for the year, the investing community tends to have faith that the big corporations will eventually get back on track.

Finally, Enterprise Products Partners (NYSE:EPD) is a midstream limited partnership with a portfolio that’s perfect for a downturn like this. The last time oil prices dropped below $30, EPD didn’t have to cut pay or distribution. Plus, it has a financial debt to EBITDA ratio of around 3.4 times, making it one of the most conservative spenders in the space.

What do you think? Are you planning to take a position in any of these oil stocks to buy? Is this sector ripe for opportunity, or will it continue down from here? Let us know your thoughts!

Featured image: DepositPhotos © solarseven

Please See Disclaimer

If You Liked This Article Click To Share


Risks and Disclosure:

Information provided in this correspondence is intended solely for informational purposes and is obtained from sources believed to be reliable. While all information is believed to be reliable, it is not guaranteed by us to be accurate. Individuals should assume that all information contained on this website is not trustworthy unless verified by their own independent research. Also, because events and circumstances frequently do not occur as expected, there will likely be differences between any predictions made or suggested and the actual results.

All statements and opinions expressed are the opinions of the author and not of Richtvlive.com or its officers. The author is wholly responsible for the validity of all statements. Richtvlive.com was not involved in any aspect of the article preparation. The author was not paid by Bitrex Inc for this article. The author did not pay Richtvlive.com to publish or syndicate this article.

This article does not constitute as investment advice. Each reader is encouraged to consult with his or her individual financial advisor; any and all actions taken by a reader as a result of the information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Richtvlive.com's terms of use and full legal disclaimer. This article is in no way a solicitation for investment. Richtvlive.com does not render general or specific investment advice. Any information on Richtvlive.com should not be considered a recommendation to buy or sell any security. Richtvlive.com does not endorse or recommend the business, products, services or securities of any company mentioned on Richtvlive.com.

Futures, stocks and options trading involves substantial risk of loss and is not suitable for every investor. The valuation of futures, stocks, and options may fluctuate, and, as a result, clients may lose more than their original investment and possibly their entire investment. Any content on this website should not be relied upon as advice or construed as providing recommendations of any kind. It is your responsibility to confirm and decide which trades to make. Always consult a licensed investment professional before making any investment decision. Be extremely careful, investing in securities carries a high degree of risk; you may likely lose some or all of the investment.

Please see our full disclaimer here for additional details before making any investment decisions.