Oil Breaks $70

For the first time since 2014, oil is above $70 per barrel. Two years ago, oil got as low as $26. We’re obviously waiting on the president’s decision about the Iran deal.

Interestingly, oil prices and the share prices of energy stocks had diverged. Here’s a chart showing oil (in red) and the Energy Sector divided by the S&P 500 (in black). Only recently have energy stocks seen a bounce in relative terms.

It’s almost as if the stock market doubted the oil rally would last. Then they finally threw in the towel.

Posted by on May 8th, 2018 at 10:43 am


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