Energy
As Crude Jumps, A Little Rally In Oil Shares (XOM)(BP)
Published:
Last Updated:
A good thing happens, but a bad thing happens. The current market works that way. All the arrows never point in the same direction.
As word of the government’s bank bailout spread, crude oil moved up to $108. It has risen 10% in a few short days. If the market believes that the economy will respond to the "stimulus" package, oil may continue to trend higher.
How are the bank bailout and oil related? They aren’t. It is a stretch to say that saving banks will do anything for the consumer or business credit markets any time in the next several months. Some economists question whether it will do anything at all.
Oil exploration and refinery stocks are benefiting from the move in oil, whether it is justified by market forces or not.
With the market down 1.5%, Exxon (XOM) and BP (BP) are moving up, taking back some of the ground they have lost in the last few months.
Oil’s move may not be rational, but if the bailout passes Congress crude will go higher.
Douglas A. McIntyre
Get Ready To Retire (Sponsored)
Start by taking a quick retirement quiz from SmartAsset that will match you with up to 3 financial advisors that serve your area and beyond in 5 minutes, or less.
Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests.
Here’s how it works:
1. Answer SmartAsset advisor match quiz
2. Review your pre-screened matches at your leisure. Check out the advisors’ profiles.
3. Speak with advisors at no cost to you. Have an introductory call on the phone or introduction in person and choose whom to work with in the future
Get started right here.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
