Oil prices fell below $60 per barrel before rallying back above that key level recently due to a combination of oversupply and weak demand. Global oil inventories are rising, putting downward pressure on prices. At the same time, both OPEC+ and U.S. production were increasing amid relatively stable global oil demand, as OPEC+ sought to regain market share.
In addition, while concerns about global economic growth and potential recession have weighed on demand expectations, some of those worries are fading. This allows investors to start buying the mega-cap dividend-paying giants in the industry at a bargain price, especially after the OPEC+ production increase halt.
This post appeared first on 24/7 Wall St.