The FTSE 100
What has dragged down European indexes? In large part, energy was the culprit. Total
The most notable example was in 2010, when BP
While today's 0.56% drop in the FTSE isn't significant, the energy news causing the drop is a reminder that companies within the energy space take on more risk as they move to more unconventional reserves. Chevron's leak in Brazil is estimated to amount to just a few thousand barrels -- far less than the 4.9 million that leaked from BP's Macondo well. Yet Chevron is being threatened with up to $11 billion in litigation from Brazilian authorities. The lesson? Diversification is more important than ever if you're an energy investor. That being said, with companies in the sector trading between five times and 10 times earnings, any continued drop should yield some very solid bargains for investors in the space.
Keep searching for energy opportunities
If you seek new opportunities in the energy market, take a look at the top oil stocks recommended by Motley Fool analysts in a recent special free report: "3 Stocks for $100 Oil." The report won't be available forever, so we invite you to enjoy a free copy today. You can access it by clicking here. Fool on!
Eric Bleeker owns shares of no company listed above. Motley Fool newsletter services have recommended buying shares of Total and Chevron. The Motley Fool has a disclosure policy.
We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.