Oil is Starting to Flow Out of the Strait of Hormuz Again. Should You Still Buy Oil Stocks?
There is one important lesson from the geopolitical conflict in the Middle East: Energy is still vital to the world.
Overview
The geopolitical conflict in the Middle East pushed oil prices sharply higher. Now that the tensions have cooled, the price of oil has fallen back to its levels prior to the conflict. Major oil companies, like ExxonMobil (NYSE: XOM) and Chevron (NYSE: CVX), have warned that oil prices aren't reflecting industry fundamentals. So oil prices could move higher again.
But the big lesson from this event isn't that investors should try to time energy markets. The lesson is that oil and natural gas are vital for the normal functioning of the world economy. Because of that, most investors should have some exposure to the sector. Here's what you need to know and why Exxon and Chevron are great energy stocks to buy even as oil prices come back down.
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Originally published at www.fool.com.