goodiedr

Rising Crude Prices: Not Necessarily Good for Oil Stocks

Even so, I was surprised to see the extent to which oil stocks were down on Friday - I expected them to go up, as it has seemed to me they loosely follow the changes in oil price more than the general market. The only explanation I can come up with - perhaps the selloff was caused by increased expectation of a pop in the oil bubble and quick profit taking before that happens. My What If question - what if the price of oil continues to climb next week, or hold steady - are the oil stocks more likely to reverse Friday's reaction and start climbing again - or will they most likely continue downward? (I finally jumped into PBR on Friday - feel good for the long-term, but wonder what to expect if oil price doesn't correct).