Oil … Possibly the Story of the year?

Oil, or the price movement of oil, is turning into an interesting topic. After bottoming at $26/barrel in February of this year, it moved briefly above $50/barrel.

How about this rollercoaster ride ? Well maybe parachute jump would be more accurate…

6-15-16 2 Year Crude Fredgraph.png

Now the bounce back to over $50! Wow!

6-15-16 YTD crude Fredgraph

What about this move down in Rig count? Capitalism at work!

6-17-16-oil-rigs-chart

What we suspected throughout this cycle was the trickle down effect from the Energy sector and especially the peripheral feeder vendors was greater than many thought.

The terrific success of US drillers (see above massive increase in rig count) may have created a greater positive than many understood  during the boom time. When the bottom dropped out of prices … well the negative may have been greater as well.

What if Energy stabilizes and revenues begin to flow again?

Could be a much needed tailwind??? … time will tell !

Have a Great Day!

John A. Kvale CFA, CFP

Founder of J.K. Financial, Inc.
A Dallas Texas based fee only
Financial Planning Total Wealth
Management firm.
www.jkfinancialinc.com
www.street-cents.com

 

 

 

 

 

 

 

One response to “Oil … Possibly the Story of the year?

  1. Wanda Sanders

    John, very interesting observation.

    Like

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