In the event that oil prices adjust and the price of a barrel starts to rise, which stocks should be bought?

In the event that oil prices adjust and the price of a barrel starts to rise, which stocks should be bought?

The TOP 5 Oil Stocks to Buy for 2020 (High Growth)

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answers (2)

Answer 1
July, 2021

If the task is to speculatively buy (buy and sell with the aim of fixing profits when quotations rise) of shares of companies that strongly depend on the oil price, then you need to buy shares when they are cheapest (that is, when the oil price is cheapest), there should be no expectation factor for oil price growth. Why? Because if the price of oil starts to rise, the stock also starts to rise, the profit will be less. The task boils down to guessing (or understanding) when the oil price is cheapest, even before it becomes clear that the oil price will start to rise. But which companies should you buy? First of all, those who are most dependent on oil prices (i.e. their activities are maximally concentrated in the oil industry, no alternative energy or other industries). There are many other factors: the company's management, the degree of government involvement and political risks, the company's reputation and expectations from it in the market, and others that should be considered by a sophisticated speculator.

Answer 2
July, 2021

Obvious recommendations:

these are the largest oil and gas companies. In Russia, it is Lukoil (it has grown by 22% since January) and Rosneft (it has grown by 30% over the past three months), recently the ruble is becoming more expensive, the companies are growing well. Among US stocks, I recommend paying attention to Exxon and Chevron. First, they consistently pay quarterly dollar dividends. 3.42% Exxon and 4.37% Chevron. Secondly, during the fall in oil prices, these companies skillfully optimized costs and, with a rise in the price of a barrel, they can show a significant increase in profits.

There is also such a non-obvious recommendation. Oil is a generally accepted measure of energy costs, and rising oil prices increase the profitability of alternative energy projects, their financing and the demand for technology. It turns out that the more expensive oil is, the more promising alternative energy becomes. If you want to do something differently "head-on", pay attention to the shares of FirstSolar (makes solar panels) and Tesla (makes electric cars). Recently, Tesla is simply burning: on March 31, Model 3 was released, for which there are already 325,000 (!) Pre-orders. It is clear that shares will grow on such demand.

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