Oil and gas stocks may be running out of energy.
Even as oil-producing coalition OPEC and its allies agreed to extend their existing supply cuts for an additional nine months in a widely watched meeting on Tuesday, sending oil prices higher, there are still risks lurking in the energy sector, says one expert.
“I think one of the biggest risks that doesn’t get talked enough about … is that commodities have gone into a bear market, and what I mean by that is they’ve gone into a trading range that can last several more years,” Mary Ann Bartels, head of ETF strategy at Bank of America-Merrill Lynch, told CNBC’s “ETF Edge.”
“That means you get great rallies, but you also get great declines, and that the trend just tends to be flat,” she said Monday.
U.S. oil prices plunged nearly 5% in intraday trading on Tuesday as worries around a global growth slowdown continued to weigh on the commodity. Prices began to recover early on Wednesday, gaining more than 1%.
But even if energy reverses…