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Oct 22, 2020
The oil market suffered the largest hit from any sector in 2020. As a result of lockdowns, less air travel, and a substantial decrease in industrial activity; oil prices fell 32%, and iShares US Energy ETF is down 48%. The spotlight is on oil companies across the value chain to reassess the sustainability of their business models. The energy sector is undergoing some fundamental changes, as a growing portion of transportation shifting to electricity, and the increased use of renewables, dampen the demand outlook for oil. Investors may be pondering what to do with the energy sector, is it at a discount, or a value trap?
