Stocks continue to trade like a wet noodle near the unchanged line on Monday morning as investors remain indecisive heading into Election Day. But that isn’t to say there isn’t action to be seen elsewhere.
Crude oil and energy stocks are being hammered on a “no deal” result out of the OPEC meeting in Vienna — capping months of on-again/off-again hype for a possible supply-freeze deal. This time, a deal featuring a decline in Saudi output was teased in September, but broke down amid ongoing bullheadedness from the Iranians and Iraqis over their output levels.
Furthermore, there is no evidence that non-OPEC members such as Russia are interested in joining in. Why would they? It’s a classic prisoner’s dilemma: Better to let the other guy cut output and keep yours the same. Further discussions were pushed back to November, keeping the “hint-and-tease” act we’ve seen since February alive a little longer.
But for now, the breakdown in crude oil prices is resulting in some serious selling pressure on energy sector stocks. Here are five oil and gas names to avoid or play for short-side profits: