Energy Stocks To Consider For Your Portfolio
Oil and gas stocks are mostly in high demand throughout the year because fossil fuels are cheaper than most other energy sources. Oil and gas, being well established by the help of their long time in usage, have the advantage of well-laid and time-tested infrastructure.
This being said, however, prices are extremely volatile and unpredictable. This fact has been considered one of the ways energy has affected the global economy and specifically the recent inflation. The rush to clean energy is also a sign that in time, fossil fuels may lose the high demand they have enjoyed.
Dependability of supply seems to be the current problem with OPEC+ countries, last month, produced 38.3 million barrels of crude oil, which was 1.8 million barrels less than the 40.1 million barrels allowed for by the cartel’s quota. A new ‘price cap’ was also introduced last week for exports of Russian crude oil.
Oil and gas prices have hit low after low from 2018 all through to 2020 but have been slowly recovering since and taken an upward trend from 2020 to 2022. The pandemic dealt blows to this and other industries, and then came the snags brought by the worldwide financial crisis, the slow but sure recovery witnessed in the energy industry is earning it a name as a new possible cash cow for knowledgeable investors.
In this article, we will take a look at and analyze, two big names in the energy stock sector.
Marathon Oil Corp
Currently trading at $27.18 per share, Marathon Oil Corp has shot up as shown by last week’s statistics when it closed at a bit over $27 and enjoyed a 0.37 dollar spike during pre-market trading. With most investors showing a preference to trade during the usual trading hours, pre-market trading prices tend to be very volatile.
Marathon Oil Corp, a direct descendant of standard oil, founded in 1887 deals in hydrocarbon exploration in Ohio and gas operations worldwide. The Huston, Texas-based American company boasts a hold on better value than 80% of stocks given its present price. With 3.086 billion dollars in revenue, marathon oil tower (company HQ) serves company subsidiaries such as oil insurance limited and speedway.
Short-term technical score, awarded by various companies’ ranking systems after close scrutiny, lays out the company in question’s trade pattern in the latest month. According to the ranking systems of various analyst companies, Marathon Oil Corp has had a general score that not only complements its current trade patterns but also gives its price forecast a strong future.
Exxon Mobil, currently trading at 106.09 United States dollars, has a dividend yield of 3.43% and operates at an average volume of 18,343,537 shares. It also has a market cap of well over 400 billion us dollars.
There has been a recent show of volatility in oil prices with the US benchmark West Texas crude oil dropping from 120 dollars a barrel in summer to under 72 dollars a barrel now and the international benchmark, Brent Crude, prices shooting by 2.8% from a bit over 73 dollars up to 78.19 dollars.
Exxon Mobil has enjoyed these changes since, with its pricier oil, has seen an upward trend in profits which directly reflects upon its stocks since the two (profit and stocks) are directly proportional.
After recently letting go of its operations in Equatorial Guinea, Exxon Mobil on Friday, December 9th, closed a deal, worth 407 million dollars, of sale of its operations in Cameroon and chad to Savannah Energy P.L.C. as the company slowly exists Africa to follow America’s more enticing operations.
The ups and downs witnessed in the energy sector should not be enough to hold back well-informed, long-term investors. This is mostly because:
- The clear road, to soaring heights, which the industry is showing, how much fossil fuels are still needed and how much potential, investors can still find in this sector.
- In case you need to diversify your portfolio, energy stocks have always been a must-have for most seasoned investors. This however calls for a well-informed and patient investor.
- The great transition to clean energy is obviously a long way coming and will undoubtedly take a number of decades to establish giving oil and gas stock investors plenty of time since fossil fuels are under no immediate threat yet.
Price volatility should also never act as a discouragement seeing as it is a double-edged sword that cuts both ways. In short, the fluctuation means the prices may go up or down and am sure we can agree, there the challenge as in all other industries is maneuvering around these ups and downs till the best deal is struck.
Read also about:
- The losers of the energy crisis
- Clean energy stocks you should consider
- Top Energy Stocks to Watch in March 2022