Many stock market sectors took a beating at the start of the COVID-19 pandemic in Spring 2020. Cruise lines, casinos, and airlines were all battered -- to name a few.
But the energy sector was particularly hard hit. For instance, crude oil futures dropped to negative values per barrel which was the first time in U.S. history. The Energy Select Sector SPDR Fund (NYSEMKT: XLE) dropped 62% in the first quarter of 2020. That compares with a dip of 32% for the S&P 500 over the same period.
Now, nearly two years later as countries are rescinding their pandemic restrictions, the demand for oil has increased. Who will benefit from this increased demand for energy? Well, the oil producers, of course. But also the companies that supply the machinery, services, and technology that help those producers bring their oil to market the fastest and cheapest way possible. Particularly, companies like Schlumberger (NYSE: SLB) .
For further details see:
Schlumberger Has Gained 74% Over the Last 12 Months. Is It Still a Buy?