• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 2 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 5 days Does Toyota Know Something That We Don’t?
  • 4 days World could get rid of Putin and Russia but nobody is bold enough
  • 12 hours America should go after China but it should be done in a wise way.
  • 6 days China is using Chinese Names of Cities on their Border with Russia.
  • 8 days Russian Officials Voice Concerns About Chinese-Funded Rail Line
  • 8 days OPINION: Putin’s Genocidal Myth A scholarly treatise on the thousands of years of Ukrainian history. RCW
  • 8 days CHINA Economy IMPLODING - Fastest Price Fall in 14 Years & Stock Market Crashes to 5 Year Low
  • 6 days CHINA Economy Disaster - Employee Shortages, Retirement Age, Birth Rate & Ageing Population
  • 7 days Putin and Xi Bet on the Global South
  • 8 days "(Another) Putin Critic 'Falls' Out Of Window, Dies"
  • 8 days United States LNG Exports Reach Third Place
  • 8 days Biden's $2 trillion Plan for Insfrastructure and Jobs
Carbon Nitride: A Breakthrough in Material Science

Carbon Nitride: A Breakthrough in Material Science

University of Edinburgh scientists have…

Oil Prices Remain Rangebound As Volatility Fades

Oil Prices Remain Rangebound As Volatility Fades

Oil price volatility has fallen…

Editorial Dept

Editorial Dept

More Info

Premium Content

Why Oil Prices Are Likely To Climb From Here

One of the things that has always appealed to me about the energy sector from a trading and investing perspective is that it usually isn’t correlated with the US stock market. I have natural exposure there with my retirement and other investments, as I’m sure most of you do too, and having an interest in something that moves independent of equities not only smooths out the bumps along the way but also reduces the temptation to make bad mistakes, like selling at or near the bottom of a drop when the pressure mounts. If I am making money elsewhere, it is much easier to just ride out periods of weakness in my long term investments and actually keep to my regular buying schedule, which logic suggests, and every study ever done has shown, is the right thing to do.

There are times, though, when the two things seem to be directly interacting, when the price of oil, and therefore of most stocks in the energy sector, seem to have either a direct or inverse relationship with the broad US market. Over the last year or so, that has been the case. There has been an inverse relationship, with higher oil prices prompted by a global shortage of supply raising inflation worries in America, and therefore prompting selling of US stocks. The Hamas attack on Israel and their response raised even more concerns about oil supply initially, but recently, as immediate regional contagion fears have faded, the supply concerns have faded, and crude has dropped based on a weak global…





Leave a comment

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News