Oil's Demise Has Been Greatly Exaggerated

Jul. 15, 2022 11:45 PM ETOXY, SU, XOM, SU:CA19 Comments

Summary

  • Recently WTI oil prices took their biggest dip of the year, falling from $123 to $95.
  • People on Fintwit began to share memes lampooning the death of oil after the crash occurred.
  • The truth is that oil has always been volatile, and the recent crash does not mean that it is going to $0.
  • In this article I make the case that oil stocks are still pretty good investments at today's prices, as they are cheap even if we assume oil prices fall further.

Military conflict between Russia and Ukraine, A gun against the background of two state flags of the warring states.

Alex Kochev

Recently on Twitter (TWTR), influencers announced the “death” of oil, after WTI crude prices experienced a bit of volatility. Posts ranged from bears declaring victory to bulls bewailing their losses. The post below accurately represents the mood on “Fintwit” the day oil

Oil bull bemoaning losses

Oil bull bemoaning losses (Twitter)

This article was written by

Financial journalist. Passed CFA Level 1. "Growth at a reasonable price" investor. Tech and dividend growth. Like classic value plays as well as GARP-y tech stocks. Follow me on Twitter: twitter.com/AJButton2

Disclosure: I/we have a beneficial long position in the shares of OXY either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Recommended For You

Comments (19)

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.