Are These 2 Oil Stocks On Your June Watchlist?
Oil stocks consist of companies extracting and selling oil. Currently, Oil stocks are trying to recover due to the effects of the coronavirus outbreak. Back in May, multiple oil companies received around $72 million dollars in federal loans. These were funds for small businesses but were received by larger companies. This is due to Trump’s support of the industry during the economic crisis.
The oil industry is primarily responsible for creating and refining fuel such as gasoline. When the oil is less available, the price of oil goes up. Most investors choose oil stocks when prices are low. Currently, there is a huge surplus of oil being held by gas companies. Fewer planes are flying, and fewer cars are driving, and in general, fuel is being used less.
The world is reopening so this could possibly change. These current events can have a lasting effect on oil stocks for years. It is unsure at the moment if oil stocks will rebound anytime soon. Some oil stocks have still seen increases in share price with that being said. Even though the oil industry has been down, there are still oil stocks to watch.
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Top Oil Stocks To Watch In June 2020: Penn Virginia Corporation
The first oil stock to watch on this list is Penn Virginia Corporation (PVAC stock report). Penn Virginia was founded in 1882 in Pennsylvania. The company focuses on the exploration, development, and production of oil. This oil company saw a decline in PVAC stock price when the economic crisis began. In fact, PVAC stock dropped earlier than many other stocks due to its international presence.
PVAC stock began its decline in January 2020. With that PVAC stock price was around $30 a share before PVAC started to decline. PVAC stock continued to drop down for months eventually reaching as low as $1.13 a share in March. Since then, PVAC stock has been on the rise. As of June 18th, it is back up to $12.63 a share. PVAC stock price went over $17 a share on June 5th as well. Currently, PVAC stock is starting to build momentum once again.
The price of oil potentially will help drive PVAC stock price up. This oil stock has the potential to rise if the price of oil does once again. Back in March the company reduced its capital budget for 2020 by 30%. A cut like this can help Penn Virginia cope with its losses and try to get PVAC stock back up in price.
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Top Oil Stocks To Watch In June 2020: Occidental Petroleum
The second oil stock on this list is Occidental Petroleum Corporation (OXY stock report). Occidental Petroleum focuses on hydrocarbon exploration in multiple countries. These countries include the United States, the Middle East, Colombia, and more. Currently, Occidental Petroleum is number 167 on the Fortune 500 companies list. The company was founded in 1920 and has grown to be a very large corporation since
OXY stock is also affected by what the price of oil and gasses are at. OXY stock price decreased around 72% when the economic crisis struck. The price of OXY stock was at $42 a share on average and fell as low as under $10 a share. OXY stock price is slowly rising up once again though. On June 18th OXY stock was trading at $19.83 a share on average. This is $2 higher than the previous four days on the market.
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What Now?
Oil stocks are in a very speculative place making it tricky for investors to decide where to put their money. PVAC stock and OXY stock are two oil stocks to watch due to their recent movement in the market. The price of oil may take a while to rise back up which is a problem. That does not mean there isn’t money to be made with oil stocks. Keeping an eye on the market and news and reports from companies that will affect oil stocks is a good place to start.
