The price of crude oil fell the most since March last week, and both the U.K. and U.S. benchmarks traded below US$100. The spot price of oil is often very volatile due to logistical issues, but in this case, futures contracts out to July 2023 are now trading around US$90. This suggests that the market is expecting the prospect of a global recession to result in lower demand for oil.
👉If the oil price remains closer to $100 it should eventually filter through to consumer inflation. While the prices of consumer goods and services seldom fall, they may at least stop rising. Nevertheless, it may take a few months for the lower oil price to be reflected in inflation data — and that’s assuming the price remains at these lower levels.
🚨The Insight: What to do? 🚨
If you believe oil prices are likely to rebound and remain higher for a longer time, you might be interested in investing in stocks that benefit from higher oil prices.
Alternatively, if you think the elevated prices are shorter term, you may be more interested in looking at some renewable energy stocks since they’re expected to receive a lot of business over the next decade.
⚠️ Should I Buy the Dip?⚠️
To be clear, at EngineeringRobo we believe you should only buy stocks when they are trading at an appealing discount to your estimate of fair value (regardless of whether the market has dipped or not) after EngineeringRobo give buy signals.
The buy signals will save your time & money & energy!
👉#OIL went up over 150% after EngineeringRobo turned bullish for it. Buy with 2 different buy signals, sell with 2 sell signals. Simple!
🟢If you are trading & investing in the financial market such as stocks, crypto and commodity markets, EngineeringRobo help you to maximize your return!