Why buy XOM, RIG and XLE, and low prices News ad

On Monday, oil prices fell sharply again, with Brent, not dropping to a low level, like $ 62.51 per barrel and intermediate (WTI) in Western Texas (WTI) $ 58.95 Before settling a little higher by the end of the day.

This drop was largely because of Different fears about the world excess delivery –Especially with the withdrawal of records coming from American shales and OPEC+, signal without immediate abbreviations –Growing trade tensionand a Stronger US dollarField

As we have seen over the past few weeks, the energy sector was one of the first sectors to strike from Trump’s ads on tariffs. Investors are worried about slow global trade and economic impulse, which logically gives expectations of oil demand.

Nevertheless, these fears may not be so much deep as some of today’s prices suggest, so you should consider some of the current prices for the price as an opportunity.

It is true that some short -term stops in trade may occur, but in the long run, leading economies in the world simply will not be able to restore these effects without enough oil at hand to support them.

With this in mind Exxon Mobil Co. NYSE: Xom And Transocean Ltd. NYSE: RIG two Oil and energy This can serve as a valuable addition for investors who seek to hedge or even benefit from the volatility associated with tariffs and global uncertainty.

Defensive choice: Exxon Mobil

As a global oil manufacturer and exporter, Exxon Mobile offers the level of stability, which is becoming more and more scarce in today’s market.

While wider S&P 500 decreased by more than 12% Over the past month, Exxon Mobile showed relative stability until Monday only when the shares closed down by 2.4% And fell below the 50-day sliding average for the first time in a few months.

This decline even occurred as Oil prices fell more than 15% In early April, emphasizing the pressure in which the sector is located. Nevertheless, analysts remain confident in the long -term position of Exxon Mobil. The scale of the company, diversified operations and global coverage provide a degree of isolation from short -term shocks.

Not just an idea, this belief has been proven as a short percentage of Exxon, applied by 1.8% over the last month. Although this may not seem to be a great retreat, only on the contrary it can be expected from shares that refused the profit of the month during this market sale.

Nevertheless, bear traders know that this action can rise as easily as from the key positioning in world markets.

From this, analysts retained the target price of $ 128.20 per share since April 8, 2025, calling for the same amount as 23.6% growthAnalysts are not always ready to maintain an action with a recently bear price action, for example, Exxon, therefore, the fact that the topic remains focused on raising should be much more important today.

In addition, shareholders can receive 3.8% annual dividend yield to soften part of short -term volatility.

Speculative game: Transcheyan

Since Transocean works at the upper end of the value chain in energy markets, it is much more susceptible to fluctuations in oil prices. And although today it can be negative when prices are restored on the inevitable rebound of energy demand, despite the fact that there may be tariff assumptions, an offshore drilling specialist will become one of the first shares reflecting the ascending trend.

As oil continues to decline, Transocean shares followed their example, having lost more than 5% on Monday and now Trade of only 30% of 52-week maximumField

Like Exxon, the analysts decided that the future is too bright to ignore the potential of Transocean. They still have to significantly reconsider their prospects, and the consensus target price remains nearby $ 5 per share– show at More than 130% of potential growth From today’s levels.

The financial indicators of Transocean are largely dependent on the restoration of demand and oil prices, which makes it a very unstable, but potentially useful game, if feelings are shifted. If it is convenient for you to use this level of risk of volatility, Transocean can provide a huge asymmetric opportunity.

Balanced route: Energy ETF

For those who do not dare to devote themselves to individual names, the funds for the exchange of energy sector (ETF) offer a more diversified approach.

A SPDR Section SecTOR SECT Foundation NYSEARCA: Xle It provides a wide exposition for oil and gas specialties, including Exxon Mobil, Chevron and Schlumberger.

Unlike many parts of the market, Xle withstood relatively well, ahead of the S&P 500 more than 5% During the recent sale of sales tariffs.

This performance emphasizes the preference of the investor in the energy space among wider uncertainty.

ETF, such as Xle, reduce the risk of one runoff, allowing investors to maintain a directed effect of the sector with strong long -term bases.

Energy: Sector with the remaining force

Although the market reaction to the headlines of tariffs was fast and punishing, the main foundations of the energy sector remain untouched.

Even if oil demand temporarily softens, history suggests that it will recover as soon as the exchange of uncertainty disappears. In this context, these recent rollbacks may turn out to be temporary distortions, and not long.

Be it through Relative safety Exxon Mobil, High reward potential Transocean Ltd. or Diversified pillow From such a fund as Xle, investors have options. Energy is still the cornerstone of the world economy, and this makes it a sector that should be observed, even in unstable markets.

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