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Is It Time to Buy Beaten-Down Energy Giants? - Investopedia

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Is It Time to Buy Beaten-Down Energy Giants? - InvestopediaIs It Time to Buy Beaten-Down Energy Giants? - InvestopediaPosted: 30 Jun 2020 08:57 AM PDT The West Texas Intermediate (WTI) crude oil contract is trading near $40 after completing an 80-point journey off April's historic low at -$40.32. Energy stocks have bounced off lows since that time, but energy giants and Dow components Chevron Corporation (CVX) and Exxon Mobil Corporation (XOM) are still trading well below levels posted in January and February, bringing recovery efforts into doubt. Even so, bottom fishing continues at a modest pace while armchair technicians wonder if it's time to take the plunge.These behemoths face greater challenges than smaller production and exploration companies because gasoline sales are highly cyclical, rising during periods of economic growth and contracting during downturns and recessions. U.S. business activity remains well below 2019 peaks despite reopening efforts, raising fears tha…

TOPIC PAGE: Coronavirus, oil price crash – impact on chemicals - ICIS

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The European petrochemicals index tracked stable levels on the previous day’s movements, but listed companies largely trended down on Monday’s values.This largely chimed with movements on key European markets, which although tracked minimal respective growth and declines on yesterday, marked record quarters.Germany’s DAX bourse had its best-performing quarter since 2015, rising 24% since the second quarter began, leaving the market down 7% for the year so far, while France’s CAC recorded Q2 gains of 12.5%, down 18% for the year.Even in the UK which has marked more pronounced damage and higher infection rates than the rest of Europe, the FTSE posted its best quarter in a decade, up 9% since the beginning of April, with 2020 performance down 18% overall.Eurozone inflation made gains of 0.3% for June, capping any deflation of energy prices noted in the single-currency bloc.Chemicals prices have reflected this trend in Europe, with some improving demand for acrylonitrile (ACN), and some p…