Bad News Is Good News for (Some) Oil Stocks Right Now
OPEC has agreed to extend production cuts, which energy investors expect to help correct the painfully out-of-balance global supply/demand equation. That's got oil prices up off their recent lows and energy stocks moving higher again. But there's something else going on in the industry that investors need to consider that could limit the growth of energy companies both large and small. Here's what you need to watch, and how you should think about it.
Oil and natural gas are commodities prone to dramatic and frequent price moves. All it takes is a bit of news and prices can soar or collapse, often taking the share prices of energy industry giants like ExxonMobil (NYSE: XOM) and Chevron (NYSE: CVX) higher or lower. The stocks of smaller players like Chesapeake Energy (NYSE: CHK) and Matador Energy (NYSE: MTDR) are usually impacted even more.
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Source Fool.com
