Stock Pick

  • Should you invest $1,000 in Woodside Petroleum shares?

    oil price increase

    Woodside Petroleum Ltd (ASX: WPL) shares have been smashed in 2020. The ASX 200 oil share is down 37% in 2020 (at the time of writing) amid an oil price war between Saudi Arabia and Russia.

    But is Woodside going to keep falling lower or is it a good place to invest $1,000 right now?

    Why are Woodside Petroleum shares falling lower?

    The coronavirus pandemic has hit ASX 200 shares hard, but ASX energy shares have had something else to worry about. Tensions have been heightened between OPEC+ and Russia in 2020. The ongoing stand-off between the world’s largest oil producers has led to oversupply and even sent the oil price negative in May.

    Woodside Petroleum shares have been smashed in response and Australia’s largest oil and gas producer has shed billions in value. However, there could be light at the end of the tunnel for Woodside and its shareholders.

    There are signs of slowing oil supply in the world. OPEC+ has delivered oil production cuts which could help support global crude oil prices. The global alliance will trim supply by 9.7 million barrels per day or roughly a 10% cut to current levels.

    That’s good news for the Woodside Petroleum share price. Higher oil prices are good for producers as they realise a higher average sale price. For shareholders, that could mean higher earnings and strong dividends.

    Should you invest $1,000 in Woodside?

    ASX energy shares are struggling right now. Woodside is being hit particularly hard despite slashing jobs to try and conserve cash amid the COVID-19 pandemic.

    If you want to invest $1,000 in Woodside Petroleum shares, it could turn out to be a great investment. However, I think it would have to be part of a highly diversified ASX share portfolio. ASX energy shares like Woodside are volatile at the moment and no one knows how geopolitics will play out in the current environment.

    That means Woodside Petroleum shares could fall lower before they recover in the long-term. I don’t think I’m willing to buy just yet, but a 37% share price decline is certainly tempting to any value investor.

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    Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

    The post Should you invest $1,000 in Woodside Petroleum shares? appeared first on Motley Fool Australia.

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  • Fed Chair Powell testifies, Walmart, Home Depot, Kohl’s report earnings: What to know in markets Tuesday

    Fed Chair Powell testifies, Walmart, Home Depot, Kohl's report earnings: What to know in markets TuesdayThe spotlight Tuesday will be on earnings from retail heavyweights Walmart, Home Depot and Kohl’s and Federal Reserve Chairman Jerome Powell’s testimony on Capitol Hill.

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  • Strategist Expects Gold, Silver To Gain As Pandemic Panic Subsides

    Strategist Expects Gold, Silver To Gain As Pandemic Panic SubsidesGold and silver prices rallied Monday amid market strength as news from a Moderna Inc (NASDAQ: MRNA) trial stoked optimism about a potential coronavirus vaccine. On Monday, June gold futures were trading at $1,733 and July Comex silver prices were at $17.39 per ounce."Gold and gold stocks had a strong month, recovering all of their March losses and moving to long-term highs," Joe Foster, portfolio manager and strategist at VanEck, said in a note.Hedging With Gold As the pandemic market panic subsides, investors are trying to gauge the risks and opportunities in a world that carries a level of uncertainty that only those with memories of the Great Depression and World War II have experienced, the VanEck strategist said. "Continued strong inflows to bullion exchange traded products along with strong demand for retail coins indicates both institutions and individuals are turning to gold as a store of value and hedge against uncertainty," Foster said. On April 9, gold jumped $40 per ounce when the U.S. Federal Reserve unveiled its $2.3-trillion program to aid local governments and small- and mid-sized businesses."It [gold] went on to a new seven-year high of $1,747 per ounce on 14 April, then consolidated its gains around the $1,700 level. Gold ended the month at $1,686 per ounce for a $109 (6.9%) gain," he said. Banks 'Can't Arbitrarily Print' Gold The trillions being injected into the economy via quantitative easing alongside monetary and fiscal stimuli devalues and debases paper currency, said Bryan Slusarchuk, CEO of Fosterville South Exploration. "Gold is the only currency that central banks can't arbitrarily print more of, and as such it is the only currency that acts with stability during a time of crisis," he said. With more and more paper currency in circulation, the currencies become inherently worth less and less, the CEO said. Price Action The SPDR Gold Trust (NYSE: GLD) was down 0.57% at $163 at the time of publication Monday, while the VanEck Vectors Gold Miners ETF (NYSE: GDX) was down 1.56% at $36.Related Links:Barrick Gold Reports Q2 Earnings BeatMining Sector Hit By Coronavirus Lockdowns, Silver Production WallopedLatest Ratings for GLD DateFirmActionFromTo Apr 2013Oracle Investment ResearchInitiates Coverage onStrong Buy Apr 2013Oracle Investment ResearchInitiates Coverage onStrong Buy View More Analyst Ratings for GLD View the Latest Analyst Ratings See more from Benzinga * Gold Analyst Says Rally Is Short-Term, Prices Will Recede To ,600 By Year's End(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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