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Why Exxon Mobil is a smart bet on the energy sector

Fuel prices are displayed at an Exxon Mobil Corp. gas station in Arlington, Virginia, U.S., on Wednesday, April 29, 2020.

Andrew Harrer | Bloomberg | Getty Images

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Goldman Sachs analysts are growing more bullish on oil prices, and they believe there’s a way for options traders to take advantage.

Energy companies have been hit hard during the coronavirus pandemic, as travel restrictions spurred a dramatic demand decline and heavy debt loads weighed on company cash flows. But with a vaccine and economic recovery in sight, Goldman sees the energy sector’s outlook improving.

On Dec. 15, the firm moved its rating on Exxon Mobil to buy for the first time since 2016.