Oddbean

Commodities, energy stocks on sale after dip in oil prices: Wells Fargo ========== Wells Fargo suggests that the recent dip in oil prices presents a buying opportunity for commodities and energy stocks. They believe that investors should take advantage of the weakness in oil prices to add exposure to commodities and the energy equity sector. Wells Fargo expects a rebound in oil prices and notes that oil has fallen 16% from its recent highs but has now breached oversold levels. They anticipate that oil prices may find support in the high $60s or low $70s. The demand for oil is expected to be supported by economic growth, with the U.S. economy likely to avoid a hard landing. International growth is also starting to recover, which should help soften any deterioration in oil demand. On the supply side, concerns about OPEC phasing out production cuts later this year have been a drag on sentiment. However, Wells Fargo believes that it will take some months for this to happen, giving additional time for economies outside the U.S. to continue improving. https://www.investing.com/news/stock-market-news/commodities-energy-stocks-on-sale-after-dip-in-oil-prices-wells-fargo-3480198