50.85 -0.02 (-0.04%)
After hours: 6:12PM EDT
|Bid||0.00 x 900|
|Ask||0.00 x 800|
|Day's Range||49.94 - 52.72|
|52 Week Range||18.30 - 64.70|
|PE Ratio (TTM)||N/A|
|Expense Ratio (net)||1.30%|
In the short term, the Organization of Petroleum-Exporting Countries (OPEC) has significant influence on the price of oil. Over the long term, its ability to influence the price of oil is quite limited, primarily because individual countries have different incentives than OPEC as a whole. For example, if OPEC countries are unsatisfied with the price of oil, it is in their interests to cut the supply of oil so prices rise.
This is great news for energy stocks. Less supply obviously means an increase in crude oil prices, in energy stocks and in oil stocks. West Texas intermediate crude oil prices hit $71.24 per barrel, while Brent hit $77.21 per barrel, up more than 3%.
A leveraged play on energy or oil could be an excellent idea as these could see huge gains in a very short time frame when compared to the simple products.
Whether we are talking about Brent Crude, West Texas Intermediate or any of the other oils, the major trading assets have decisively broken out of a multi-year trading range. Oil services stocks were a hit-and-miss depending on size and type of business. Once West Texas Intermediate Crude broke above $50, the move up was confirmed by the 50-day moving average finally crossing above the 200-day moving average.