Supplies of oil in developed nations are at their highest levels since last September and have been rising for six months in a row now. As a result, many oil companies have cut back their capital spending programs and are not exploring or drilling right now.
At the same time, oil demand has fallen to the lowest level since 2012, according to the International Energy Agency. So, many drilling companies have suffered, and their stock prices are extremely low.
However, drilling activity will inevitably pick up again, and these undervalued stocks will rise sharply in value and price.
Here are three oil stocks to buy in anticipation of better times.