Is Now the Time to Invest in Oil Stocks?
In 2007, Oil become of the most speculative investments before the market crash wiped out a lot of the money that helped pushed this commodity to nearly $150 per barell. Fast forward three years later and the BP fiasco in the Gulf of Mexico leaves one wondering whether oil companies, and BP in particular, will have a tough time earning a profit when the government will have to be a lot more strict about offshore drilling (and likely drilling altogether). Should investors avoid holding oil companies in their portfolios with this in mind or should they jump at the opportunity to own them while they are “bruised?”
Some large, institutional investors feel one way while others feel the other.
Reasons to Buy
In addition to the oil companies lacking common appeal, there has been a lot of selling pressure which has not only impacted BP’s price (although this one has been the hardest hit) but others in the segment. This