Matt Badiali Quoted in Investopedia: 7 Oil Stocks with Big Returns
Investopedia contributor Mark Kolakowski has been a consultant for JPMorgan Chase as well as major internet entrepreneurs. From 2008 to 2016 he was the Financial Careers Expert for About.com. His latest contributing article 7 Oil Stocks That Can Gush Big Returns shares a lot of the same notions that I have been presenting to my Real Wealth Strategist subscribers on rising oil prices and the stocks that are positioned for big returns.
Mark’s article goes in-depth about oil prices and shares of energy companies that are benefiting the most from the rise of oil prices – exploration and production companies, technology, and management and strategy companies. When we think about investing in oil (and any other natural resources), we should be thinking about investing in the various companies that own a stake in oil production altogether, which is where Mark’s graph of the seven oil stocks to invest in for big gains comes from.
Typically, oil prices are correlated with economic growth. However, oil prices have continued to rise despite global economic slowdown due to Trump’s tariffs and trade disputes. The situation surrounding economic tensions and oil prices increasing signals a volatile environment when it comes to commodity prices and stocks.
According to data from the International Energy Agency (IEA) cited by Barron’s, global supply and demand for oil are very tight, with average global demand for this year projected to exceed June’s rate of production by about 300,000 barrels per day (B/D). Matt Badiali, a natural resources analyst at Banyan Hill Publishing, tells Barron’s that there are several factors pushing oil prices upward: supply disruptions resulting from economic and political collapse in Venezuela, plus sanctions against Iran, as well as production increases by OPEC and Russia that, so far, are insufficient to close the gap between supply and demand.
To read more on oil prices, the top 7 oil stocks to invest in, and the move to $100 oil, check out Mark’s article 7 Oil Stocks That Can Gush Big Returns.