Published on 9 Feb 2024 on InvestorPlace via Yahoo Finance
3 Doomed Oil Stocks to Dump Before They Dive: February 2024
In 2023, energy enterprises grappled with a formidable challenge, a stark departure from the robust rally witnessed in the two preceding years. The Energy Select Sector SPDR Fund (NYSEARCA:XLE), a vital benchmark, mirrored the plight of the doomed oil stocks with a 2.33% share price decline in the tumultuous past year. As we look ahead to 2024, projections indicate that crude oil prices will stabilize around the $80 per barrel range. Although the Organization of the Petroleum Exporting Countries and its allies (OPEC+) have recently implemented supply cuts in a bid to support the market, the energy sector remains susceptible to heightened volatility, particularly if geopolitical tensions continue to escalate.
Following COP28, where global leaders pledged to shift from fossil fuels to renewable energy, over half of the participating nations, including major oil producers like the UAE, committed to “phase down” or “phase out” oil production. This landmark agreement exerted immense pressure on the fossil fuel industry, making these three oil stocks vulnerable investments to offload before facing inevitable challenges amid evolving market dynamics.
Icahn Enterprises (IEP)