Don’t Write-Off Oil Stocks Yet; Barron’s (BP, RIG, HAL, RDC)

The Gulf of Mexico oil spill has adversely affected stocks of oil companies. Though no one believes that underwater drilling can stop completely, stocks of oil companies have been affected by the event. According to Barron’s, the stocks directly related to the oil spill, i.e. BP (NYSE: BP), Transocean (NYSE: RIG) and Halliburton (NYSE: HAL), have seen the maximum fall and have lost around 40% of their market capitalization.

These stocks have been almost discarded in a knee-jerk reaction by the market. The unrelated oil stocks like that of Rowan Companies (NYSE: RDC) fell a little less, comparatively. These unrelated stocks that fall less tend to outperform when the industry recovers.