RIG - 5 Experts Predict the Next Oil Stocks That Could Go Bankrupt
The oil industry is in disarray. With few exceptions, this is the sector that investors should avoid right now. Yes, oil prices have gone up since bottoming out in late April, but the situation on the ground, particularly for the companies closest to the well, is still deteriorating. Simply put, every day that passes compounds things, since oil production continues to exceed demand.
Case in point: We asked some of our top energy contributors in late April to predict which oil stocks could go bankrupt in 2020, and we've already seen one of the four file for Chapter 11 and two others hire restructuring advisors. So we decided it's time to take another look at the oil sector, as it becomes more apparent which companies could be in the most trouble.
This time the list includes five oil stocks on the brink of financial disaster: Transocean (NYSE: RIG), Occidental Petroleum (NYSE: OXY), Northern Oil & Gas (NYSEMKT: NOG), Chesapeake Energy (NYSE: CHK), and Denbury Resources (NYSE: DNR). Keep reading to learn why our experts think these five oil stocks are very much at risk of being the next to file for bankruptcy protection.