Shares/Stock Should You Buy Oil Stocks Amid The Covid-19 Pandemic?

[Good-Guy]

This world will never forget the Covid-19 pandemic. In fact, our future generations will remember this period just like we remember the great plague pandemic and other pandemics that caused much destruction in the past. One of the biggest harm that this pandemic caused was the fact that many businesses got closed and many supermarkets also closed as many people were advised and even forced by the government to maintain social distancing. Since people were not obeying, the government imposed lock down restrictions and used police and military police to make sure social distancing is being observed by people.

However, this destructive pandemic not only led businesses to bankruptcy, but the public transport industry also suffered a lot. When the lock down was imposed public and private transport suffered a lot because people were spending their time at homes. This led to a huge crash of oil stock prices. In fact, at that time Covid- 19 also had an impact on international traveling due to restrictions and many airline companies went bankrupt. This was mainly because of the huge crash of oil prices. Do you think that it would be a great opportunity for investors to buy those shares, as the value may shoot up in the future after the pandemic? What do you think?

 

[Jasz]

As the Covid-19 pandemic continues to spread, many investors are wondering: should I buy oil stocks?

Oil has been an increasingly important product to the worldwide economy for years, and it's not out of the question that demand for oil will continue to increase as the world population grows.

As of now, there is no cure for the Covid-19 virus, which makes it difficult to predict how this pandemic will ultimately affect the supply and demand of oil. While some countries have banned motor vehicles entirely in an effort to slow the spread of the virus, others have issued warnings against any unnecessary travel. With so much concern in the air surrounding travel, consumers are unlikely to increase their consumption of gasoline any time soon. Thus, many oil companies find themselves in a precarious situation.

However, according to some experts, we could be witnessing a global shortage of oil at any moment. The Commonwealth Bank recently issued a report stating that "the next oil crisis is coming sooner than you think," going on to claim that "the world is on track for a major supply crunch as early as 2020." If this report proves true, then most oil companies will likely be able to weather this economic storm without too much trouble. You should think twice before such investment for now.

 

[Alexandoy]

I think I had read the news about the stocks of oil companies that are still thriving even if there is lesser oil consumed due to the pandemic. In the industrial countries like China the need for oil and coal is still very much felt because of the production in the factories. With the transportation it is still profitable for the oil companies because the public transport is still moving along and the traffic is causing much wastage in fuel. Investing in oil stocks is a good idea for now although I have to admit that my stock investment is only 1 which is the stocks of the biggest bank in our country. I am a newbie in stock trading and in fact I have not experienced trading yet. My stocks are stagnant as of now because I am still waiting for the big dip so I can buy more stocks of the same company.

 

[kaitlynkateduff]

You should! Consider investing in ConocoPhilips and ExxonMobil Corp.