Let’s face it. Oil companies in the United States are suffering, and they have been for much of the year. Marathon Oil (NYSE:MRO) is no different and shares of MRO stock have taken up residence in Penny Stock Land.
Oil – black Gold – Texas tea – is kind of on the ropes, thanks to a combination of events.
Paramount among these events is the novel coronavirus. The pandemic spawned by Covid-19 has devastated the global economy. Almost any company associated with the travel industry, from airlines to hotel owners to oil companies, has nearly been crushed by the rapid and intense economic slowdown.
Consumers dramatically altered their lives in response to the pandemic. They stayed home (and shopped online). Trips were canceled. Airplanes were parked because travelers were few. And layoffs and business closures have been legion.
One ripple effect has been a sharp drop in the demand for oil. As a result, prices for the historic commodity have fluctuated widely. The volatility has been impressive. It wasn’t that long ago that the price of oil was actually a negative number, a numerical oddity that stunned many investors with a clear indication that this was not a normal situation.
What About MRO Stock?
The Houston-based energy firm, which has a market cap of about $3.46 billion, can trace its roots to 1887 and Standard Oil, taking twists and turns over the century-plus to even be a part of United States Steel.
Few people would describe Marathon Oil as a