Thinking About Buying Oil Stocks? Everything You Need to Know Right Now

Thinking About Buying Oil Stocks? Everything You Need to Know Right Now

On April 9, OPEC, led by Saudi Arabia, was joined by Russia and other major global producers in an agreement to take a record amount of crude oil production off the market .. Even taking 10 million barrels per day -- which works out to roughly the average daily production of Russia or Saudi Arabia before they increased output in April -- simply won't do enough.. We are facing unprecedented levels of demand destruction under COVID-19 restrictions, and the oil patch is headed toward a brutal 2020 and potentially beyond.. Oil stocks have crashed as a result, falling far lower than the rest of the stock market, even after its recent rebound.. Strong integrated super-majors like ExxonMobil ( NYSE:XOM ) and Royal Dutch Shell ( NYSE:RDS.A ) ( NYSE:RDS.B ) are down around 40%, while independent oil producers Occidental Petroleum ( NYSE:OXY ) and Chesapeake Energy ( NYSE:CHK ) -- both of which entered the oil downturn with problems -- are down 81% and 68% from their pre-crash highs.. In its monthly oil markets report, the International Energy Agency (IEA) warned that global oil demand was going to fall