At what price does Oil and S&P's relationship change?

Discussion in 'Trading' started by CyJackX, Feb 8, 2017.

  1. CyJackX

    CyJackX

    High prices are good for energy companies, but at some point, high prices affect costs for consumers and companies.
     
  2. Handle123

    Handle123

    I think at some point anything will follow stock market, but nothing lasts forever without some change. It use to be when stock market was going up, Bonds go down, and I think right now, Bonds/S&P is going to continue to spread, but under Obama, he kept interest as small as possible so he could spend more, as interest rates grow larger, so will the debt.

    MONTHLY CRUDE OIL
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    MONTHLY ES
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  3. xandman

    xandman

    I believe 2010-2014 averaged about $80 dollars a barrel. I remember hearing political rhetoric and bearish stock market prognostications at around $120+ much longer ago than that. Government can easily make oil a scapegoat for future inflation. But, you and I know that we printed buku money already.

    Price shocks are another ballgame. High expectations at the end of this year is $65 but not guaranteed. It could still collapse to $30-40. Fracking/Oil sands/horizontal drilling was a game changer.

    Health Care costs are a bigger problem.