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2 Extraction Stocks Under $10 to Buy on the Dip in Oil -Breaking

by Mike Robinson

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© Reuters. 2 Extract Stocks Below $10: Buy the Dip in Oil

Last week, oil prices fell on worries about a weakening market after Austria declared a national lockdown to stop the spread COVID-19. Therefore, we think it could be an opportune time for buying oil extraction stocks to cash in on the commodity’s rebound. We believe low-priced extraction stocks W&T Offshore (WTI) and VAALCO Energy (EGY) could be solid bets amid the dip in oil prices. Let’s discuss.Oil prices fell to a six-week low last week on concerns over demand with new COVID lockdowns being considered or implemented in some countries. Austria on November 19 announced a nationwide locking down. Oil prices fell to negative territory. West Texas Intermediate, the U.S. benchmark oil price, fell by more than 4 percent last week to an all-time low of $42 per barrel. This was a new record since October 7.

OPEC says that oil demand will rise to levels not seen before the pandemic in 2022. Investors could reap the benefits of stocks purchased during the drop in oil prices.

So, we think it could be worth betting on extraction stocks W&T Offshore, Inc. (WTI) and VAALCO Energy, Inc. (EGY). These stocks trade at less than $10, but have solid rebound prospects.

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