Crude Oil Moves to Forefront in Marketplace ($BNO $CVX $UNG $USO $XOM)
There are various stock out on the market, and often some move to the forefront from time to time. This time around, it seems that investors should focus on crude oil and not much else. Why? Ycharts gives some details on this.
Investors might be tempted to see higher gasoline prices as a reason to snap up shares of big oil, and it’s an impulse that makes a roundabout kind of sense. More production (drilling) would help big oil profits. The price of gasoline, though, is all but irrelevant. Gasoline represents is a tiny fraction of earnings for companies like Exxon Mobil (XOM) and Chevron Corp. (CVX), so $6 a gallon gasoline will do little for their share prices. Big oil makes more money when gasoline prices are higher simply because that means crude oil prices are higher. Gasoline is a refection of crude prices, not the driver of them.
This sounds like good news for us energy investor junkies! Watch the markets, as usual, it can give you hints on where to invest next and what area of the market to focus on.
Quotes taken from report by Ycharts, Read the entire article here.
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