3 Energy Stocks to Avoid as Delta Variant Endangers the Oil Recovery

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However, the rapid spread of the COVID-19 Delta variant is now threatening to cool the oil demand. As several countries reinstate travel restrictions to curb the spread of the virus, oil demand will likely remain tepid in the near term. Meanwhile, earlier this month, OPEC+ closed a deal to increase oil supply gradually, aiming to fully phase out production cuts by around September 2022. So, with depressed demand and a supply glut, oil prices are expected to decline further in the coming months.

Given this backdrop, we believe fundamentally weak energy stocks EQT Corporation (EQT), Tellurian Inc. (TELL), and Delek US Holdings, Inc. (NYSE:DK) are best avoided now.

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