What Current Oil Prices Are Telling Oil Stock Investors
The energy sector is a huge part of the economy. No matter how vital it is, though, oil is still a commodity and subject to the whims of supply and demand. Market news is released daily about the crude oil production of OPEC nations, how many barrels of oil are in the marketplace, and what traders think about crude oil futures prices. Needless to say, investing for the long term based upon what the market expects this month, this year, or at any time is a fool's errand. The ability to produce at a low cost is arguably the best strategy in today's world. The current market dynamic is indeed interesting, particularly in light of OPEC's recent commitment to production cuts. But as we saw when this downturn began, the only sure thing about current oil prices is that they will change.
Read on to learn what current oil prices mean for true oil stock investors.
Data source: CME Group and ICE. Data as of 9/6/2017. Chart by author.
Source: Fool.com