Insights + Resources

Oil Prices on the Move

Feb 19, 2021

At this time last year, it was still unknown that a deadly global pandemic was on the rise, eventually stalling economic growth and sending crude oil prices into negative territory. But recently, oil prices have surged, with crude hitting highs not seen since before the pandemic.

A hopeful sign.

Recent production cuts and a belief in the potential for underlying economic growth are spurring a rally. Although the demand for oil is still lower than normal, many investment professionals harbor hopes of a speedier than expected economic recovery thanks to the ongoing global vaccination effort.1

Oil prices and the economy.

The price of oil can often influence the costs of other production and manufacturing across the United States. For example, there is a direct correlation between the cost of gasoline or airplane fuel to the price of transporting goods and people. A drop in fuel prices means lower transport costs and cheaper airline tickets.2

The ultimate lead indicator?

Some investment professionals view the value of oil as a lead indicator. Whether or not this will remain true for the future, it can be helpful to remember that lead indicators should never be seen as infallible. Abrupt and unexpected changes will prompt lead indicators to rapidly recalibrate their expectations for the future.

Let me know if you’d like to chat about the economy, oil prices, lead indicators, or any other topics you’re pondering. I’m always here to help.

For more insights and resources, be sure to sign up for our Weekly Market Commentary. Follow our YouTube channel where we regularly post our Epic Market Minute videos. Follow us on LinkedIn, or like us on Facebook. And as always, please don’t hesitate to reach out to a dedicated service professional at Epic Capital.

Tags: ,

More Insights

Mar 29, 2024

Life insurance can be an excellent tool for charitable giving. Not only does life insurance allow you to make a substantial gift to charity at relatively little cost to you, but you may also benefit from tax rules that apply to gifts of life insurance.

Mar 27, 2024

Investment inaction is played out in many ways, often silently, invisibly, and with potential consequence to an individual’s future financial security, especially when it comes to retirement planning. Let’s review some of the forms this takes.

Mar 25, 2024

Election season is in full swing as Super Tuesday solidifies another Biden and Trump rematch this November. President Biden won all 15 states and the Iowa caucuses, while former President Trump won in 14 of 15 states, prompting Nikki Haley to end her election bid.

Mar 22, 2024

Creating an estate plan is a key component of achieving financial wellness Most people don’t spend too much time thinking about end-of-life planning on a daily basis. But you may have loved ones who will soon face those issues. While it’s not pleasant to think about, you may be the one who ends up having … Continue reading “Eliminate the Guesswork in an Estate Plan”

Mar 20, 2024

When you marry or simply share a household with someone, your financial life changes—and your approach to managing your money may change as well. The good news is that it is usually not so difficult.

Insights + Resources >