While oil stocks represented one of the strongest segments of the market earlier this year due to a combustible combination of skyrocketing inflation and Russia’s invasion of Ukraine, the present circumstance presents a somewhat ambiguous environment. With the Federal Reserve committed to attacking escalating prices, hydrocarbons (and other commodities) may face pricing pressure. As well, the Fed’s rate hikes could spark a recession.
On the other hand, discounted oil stocks may represent a viable opportunity because the sector may rise again. Sadly, the ongoing conflict in Ukraine will likely continue. And that means Russian hydrocarbons effectively remain shelved for perhaps years to come.
While many if not most hydrocarbon players shot up into overvalued territory, a few names remain undervalued. Here are the discounted oil stocks to pick up on recession jitters.
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