With the Federal Reserve’s balancing act living up to expectations, investing in Marathon Petroleum Corporation (MPC), Valero Energy Corporation (VLO), Halliburton Company (HAL), and NexTier Oilfield Solutions Inc. (NEX) could help capitalize on the energy sector tailwinds.
While the banking crisis has been contained for the time being by the joint effort of the Federal Reserve, the Treasury Department, the FDIC, and a few major banks, Jerome Powell has acknowledged that financial conditions have tightened more than expected in the wake of the crisis.
While the central bank hiked its benchmark rate by a quarter of a percentage point, its chief said that tighter financial conditions caused by more stringent lending decisions from banks could have a similar impact as further hikes from the Fed. Hence, projections suggest just one more rate hike on the cards for the rest of the year.
With the markets responding positively to the Fed’s softening stance, economic activity is expected to gain momentum. This could translate into higher demand for energy and a price rebound. Big Oil has responded proactively, with projects planned in Alaska and North Africa in anticipation of this surge in demand.
Hence, it could be wise to…
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