While oil stocks absorbed some red ink, early reports about the omicron variant indicate that it produces less-severe symptoms. The thesis was that mitigation efforts will again force Americans back into their homes or at least drive down demand. ![]() To be fair, the omicron variant, along with the Federal Reserve signaling rate hikes in 2022, put a temporary damper on fuel prices. Naturally, both scientific and social forces contributed to bolstering the valuations of oil stocks. Plus, people here are not going to cower in fear forever - that’s just not the American way. Combined with loosening Covid-19 restrictions, consumers began hitting the streets in full force, a phenomenon known as retail revenge. Later, as the calendar turned the page to 2021, the vaccination rollout began in earnest. This too had a positive effect on fuel prices and subsequently oil stocks. Plus, with air travel becoming a questionable transportation method, people preferred to travel the open road for their vacations. ![]() Domestically, the recovery rally was sharp as people who had been cooped up in their homes just had to get out. ![]() With much of the world citizenry sheltering in place, there was really no place to store the sudden surplus of fossil fuels.īut soon after the spring doldrums of 2020, vehicle miles traveled in the U.S. At the start of the coronavirus pandemic, oil prices slipped to below zero, an unprecedented circumstance as the global economy ground to a halt. Perhaps no other market segment besides oil stocks have featured as strong a will-they, won’t-they narrative of pure binary chaos.
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