PSX - 3 Reasons to Buy Oil Stocks Right Now
The energy sector has gained the distinction of the most-hated market sector over the last few years. Excess oil supply coupled with plummeting demand resulted in oil prices briefly falling into negative territory. However, the latest developments give a glimmer of hope to this seemingly gloomy sector. Three key reasons make oil stocks attractive right now.
After some real tough months, U.S. economic activity is showing a nice pick-up. One of the key indicators reflecting the growth is the unemployment rate. The unemployment rate in the non-farm segment fell to 11.1% in June from 14.7% in April, according to the Department of Labor. The U.S. economy added a notable 4.8 million jobs in June.
Similarly, U.S. retail sales rose 17.7% in May from April, according to advance estimates. Even though the May sales were 6.1% lower than in May 2019, sales improved significantly from the previous month. In particular, auto sales rose an impressive 44% from April and were down just 3.9% compared to May 2019. Globally as well, the economic activity is picking up, though the countries are at different stages of recovery. China, in particular, has seen a steep recovery, recording a year-over-year growth in car sales in May.