Oil stocks have faced a torrid time over the last couple of months. This has even seen oil prices briefly turn negative, due to the significant lack of demand. But with supply being restricted, and demand also picking up, the price of Brent Crude has now reached over $42. This should rise further once restrictions are lifted and activity returns to normal. Therefore, it could be the perfect time to capitalise on cheap oil stocks. My top pick is Royal Dutch Shell (LSE: RDSB) Stock Market. 

The cut dividend

It was a major surprise when Shell cut its dividend by 66% for the first time since the Second World War. But while disappointing in the short-term, I believe that the dividend cut will benefit Shell Stock Market in the future. In fact, the cut will save it around $10bn a year and will help shore up the balance sheet. Shell Stock Market are also still yielding nearly 4%, which is significantly more than many stocks on the FTSE 100 at the moment. Furthermore, the new dividend is more sustainable that its previous yield of over 10%.

Adapting to a new environment

Management has seemed very aware of the changing environment for oil Stock Market and looks as if …

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Market news summary from Motley Fool Market News.
Author: Stuart Blair


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