Is it affordable to buy shares of oil companies, which are very cheap now? – AZFINANCE explains

Oil prices and shares of oil companies are attractive. Is it worth to invest? According to Fins.az, the experts  of Azfinance investment company say that “The oil sector has become one of the most sensitive areas this year. The spread of the coronavirus has hit global oil prices and the shares of major oil and oil service companies. The price of the Brent benchmark fell by more than 15%. This is related to declining demand, as well as the fact that OPEC  countries have not yet agreed on a reduction in production. As the virus continues to spread, the raw materials sector remains risky enough to invest. Azfinance experts also note that “in this case, large investors prefer more reliable tools, taking into account that there are no serious signals to reverse the negative trend in the commodity sector.” The investment company’s specialists are also showing investors the way out, drawing attention to the fall in the price of shares of oil companies. “After oil prices, the shares of oil and oil industry service companies also fell down. On average, shares in this sector fell by more than 12% in a month, and current stock prices have  already become attractive for long-term investment. Brent’s price is trying to settle below $ 54. It should also be noted that the market price of shares in this sector is low, which makes them more speculative”. Azfinance experts also present the prices of some giant companies for 11/02/2020, bringing the price of shares of oil companies to the attention of investors: PetroChina Company Limited – $ 44.07, 

Equinor ASA -$16.72,
Chevron Corporation – $109.79,
Schlumberger Limited – $34.35,
TOTAL S.A. – $48.87″

Author: Aynur Ganiyeva