Many investors have watched in awe at the plummet in oil price that began in June 2014. Some watch with mild intrigue as they enjoyably accept lower prices at the gas pump, others excitedly see the sell off as a buying opportunity while still others scratch their head as they wonder if this oil sell off is different than others; are the lower oil prices here to stay?
This has been an area of interest for our clients and many investors across the globe. Turning on the news and hearing very strong opinions about where oil prices are going, one might be surprised to find that there is wide spread disagreement even on Wall Street about the expected future prices of oil.
- Be aware of varied perspectives—there are many factors at play ranging from global supply/demand to changing technologies for the energy sector. There is not a sure bet or everyone would be taking it. There are good arguments for both the negative and positive outlook and it is important to weigh both sides of the argument to avoid acting irrationally.
- Yes, there is widespread disagreement about the future outlook for oil prices. Do not be overwhelmed by the varying opinions. Remain focused on the knowable—there will be continued demand for oil for the foreseeable future. It is a sector known for its volatility so do not be surprised when it exhibits such wide swings.
Published: March 13, 2015
Authored By: Bethany Muensterman
No forecast can be guaranteed. The views expressed are those of the Payne Wealth Partners Investment Committee and are subject to change at any time. These views are for informational purposes and should not be relied upon as a recommendation or solicitation or as investment advice.The information in this material is only as current as the date indicted, and may be superseded by subsequent market events or for other reasons. Statements concerning financial market trends are based on current market conditions, which are subject to change and which Payne Wealth Partners, Inc. does not undertake to update. While all information prepared in this document is believed to be accurate, any statements of opinion constitute only current opinions of Payne Wealth Partners, Inc., which are subject to change and which Payne Wealth Partners, Inc. does not undertake to update. Accordingly, you should not put undue reliance on these statements.