• Investing
  • Stock
Round Table Thoughts
  • Economy
  • Editor’s Pick
Home Investing Is it time to sell energy stocks as oil returned to under $80 a barrel?
Investing

Is it time to sell energy stocks as oil returned to under $80 a barrel?

by November 29, 2022
by November 29, 2022 0 comment
Share
0
FacebookTwitterPinterestWhatsapp

Oil has returned to less than $80 a barrel in recent days but it’s not a signal that investors should pull out of the energy stocks, says Sarat Sethi. He’s the Portfolio Manager at DCLA.

Here’s why Sethi is still bullish on energy stocks

Much of his optimism is related to “China” that is yet to come out of the lockdowns. Sethi expects a meaningful surge in demand in the second quarter of 2023 when the largest Asian economy comes back online.

You’ll see upward pressure on commodity prices as China starts coming back. Dollar will start moving as well because it’s been so strong. So, I think there’s still a play in oil and gas. I think the demand there is not going away.

Also on Tuesday, Goldman Sachs’ Jeff Currie said there’s reason to believe that OPEC will opt for a further cut on oil production. He expects to see the oil prices back at $110 a barrel next year.

Avoid being overexposed to energy though

On the flip side, Sethi acknowledged the risk of a global economic downturn and cautioned against putting all eggs in one basket. Recommending owning energy stocks only as part of a diversified portfolio on CNBC’s “Squawk Box”, he said:

We’ve got good exposure to energy; we’re not selling it. I’d definitely add energy exposure on a pullback because we don’t have enough supply if demand picks up and that puts huge pressure on prices to the upside.

Energy stocks usually pay a healthy dividend that makes up for another good reason to own them. Nonetheless, it’s an interesting call considering the Energy Select Sector SPDR Fund has already climbed more than 30% over the past two months.

The post Is it time to sell energy stocks as oil returned to under $80 a barrel? appeared first on Invezz.

You Might Also Like
  • Why is Tesla stock falling? 2023 begins with 14% decline
  • Is the cheap Kodal Minerals share price a buy now?
  • Tesla stock is down another 10% on Tuesday: here’s why
  • Puts and Calls: Stock Options Explained
Share
0
FacebookTwitterPinterestWhatsapp

previous post
4 most-owned stocks by super investors
next post
Tesla stock has rebounded from a key support: should you buy?

You may also like

‘There is a lot that’s underestimated at Biogen’: CEO Viehbacher

January 9, 2023

Is it safe to buy Lazard stock in 2023?

January 2, 2023

The case for investing in REITs despite the Blackstone news

December 3, 2022

DAM Finance releases testnet for its omnichain stablecoin d20

December 2, 2022

World Bank warns of global recession as growth forecasts cut...

January 11, 2023

Elon Musk seems to have a problem with Apple: Is...

November 29, 2022

Oak Street Health stock just rallied 30%: explained here

January 10, 2023

Consumer price inflation almost at its peak, says ECB economists

December 6, 2022

US home price data continues to ease; Miami sees the...

November 29, 2022

7 Steps To Take Your Investments To The Next Level

January 20, 2023

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Week Ahead: NIFTY Set To Stay In A Defined Range Unless These Levels Are Taken Out; Drags Support Higher

      July 5, 2025
    • Essence Fest leads a summer of events for Black entrepreneurs galvanized by economic uncertainty

      July 4, 2025
    • From Oversold to Opportunity: Small Caps on the Move

      July 3, 2025
    • Money’s Not Leaving the Market — It’s Rotating!

      July 3, 2025
    • Tariffs and weaker beer demand are weighing on Modelo owner Constellation Brands

      July 3, 2025

    Popular Posts

    • 1

      Biden appointee played key role in recruiting Chinese...

      June 25, 2024 3,629 views
    • 2

      Trump-era China sanctions ended by Biden may be...

      June 27, 2024 2,914 views
    • 3

      Walz’s honeymoon with China gets fresh scrutiny as...

      August 9, 2024 2,603 views
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful...

      July 10, 2024 2,569 views
    • 5

      Harris VP pick spent years promoting research facility...

      August 29, 2024 2,445 views

    Categories

    • Economy (7,009)
    • Editor's Pick (2,163)
    • Investing (538)
    • Stock (2,653)

    Popular Posts

    • 1

      Biden appointee played key role in recruiting Chinese businesses to Delaware: ‘Longtime friends’

      June 25, 2024
    • 2

      Trump-era China sanctions ended by Biden may be revived under new House GOP bill

      June 27, 2024
    • 3

      Walz’s honeymoon with China gets fresh scrutiny as Harris camp blasts ‘lying’ critics

      August 9, 2024
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful of Chinese spy threats

      July 10, 2024
    • 5

      Harris VP pick spent years promoting research facility that collaborated with ‘Chinese military company’

      August 29, 2024

    Latest News

    • Week Ahead: NIFTY Set To Stay In A Defined Range...

      July 5, 2025
    • Essence Fest leads a summer of events for Black entrepreneurs...

      July 4, 2025
    • From Oversold to Opportunity: Small Caps on the Move

      July 3, 2025

    Categories

    • Economy (7,009)
    • Editor's Pick (2,163)
    • Investing (538)
    • Stock (2,653)

    Disclaimer: RoundTableThoughts.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 RoundTableThoughts.com. All Rights Reserved.

    Round Table Thoughts
    • Investing
    • Stock
    Round Table Thoughts
    • Economy
    • Editor’s Pick

    Read alsox

    Opera launches new Web3 security tools...

    December 15, 2022

    Eurozone inflation beats expectations, what will...

    January 6, 2023

    Jenny Harrington recommends these two services...

    November 30, 2022
    Sign In

    Keep me signed in until I sign out

    Forgot your password?

    Password Recovery

    A new password will be emailed to you.

    Have received a new password? Login here