• 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
  • Peloton is on a path to penny stock status in 2023
  • This real estate stock got a double upgrade from BofA today
  • Signet stock up 20%: ‘we’re prepared for a strong holiday season’
  • 4 dividend growth stocks to buy with a 5-year dividend growth rate of 15%
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

Long Straddle Options Strategy: The Ultimate Guide

March 27, 2023

Top 4 US banks reporting quarterly earnings this week

January 9, 2023

7 Skills You Have To Master To Play In The...

December 29, 2023

Jim Cramer on the Airbnb stock: ‘I would own it’

December 23, 2022

Meta reiterated a ‘buy’ after CEO’s remarks at the DealBook...

December 1, 2022

European Union Members Divided Over a Proposal to Cap Gas...

November 23, 2022

How did stock indexes perform in 2022? What next for...

January 5, 2023

CAC 40 index forecast after S&P cuts France’s outlook to...

December 4, 2022

Shell vs Chevron stock: One clear winner by far

January 4, 2023

Macy’s lowers its revenue guidance for the holiday quarter

January 8, 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

    • Walmart to pay $10 million to settle lawsuit over money transfer fraud

      June 23, 2025
    • Apple sued by shareholders who allege it overstated AI progress

      June 23, 2025
    • AI Stocks Ignite Again—Where Smart Money is Heading Next

      June 23, 2025
    • This Week’s Earnings Watch: Turnarounds and Momentum Plays

      June 23, 2025
    • The Best Five Sectors, #24

      June 23, 2025

    Popular Posts

    • 1

      Biden appointee played key role in recruiting Chinese...

      June 25, 2024 3,605 views
    • 2

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

      June 27, 2024 2,885 views
    • 3

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

      August 9, 2024 2,583 views
    • 4

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

      July 10, 2024 2,545 views
    • 5

      Harris VP pick spent years promoting research facility...

      August 29, 2024 2,424 views

    Categories

    • Economy (7,009)
    • Editor's Pick (2,145)
    • Investing (538)
    • Stock (2,627)

    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

    • Walmart to pay $10 million to settle lawsuit over money...

      June 23, 2025
    • Apple sued by shareholders who allege it overstated AI progress

      June 23, 2025
    • AI Stocks Ignite Again—Where Smart Money is Heading Next

      June 23, 2025

    Categories

    • Economy (7,009)
    • Editor's Pick (2,145)
    • Investing (538)
    • Stock (2,627)

    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

    Is Lululemon Athletica eyeing a Santa...

    December 7, 2022

    Analyst reveals a ‘rare retailer with...

    January 6, 2023

    Lululemon stock sinks following lowered outlook:...

    January 9, 2023
    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