Oil Tumble 🛢️

Oil Tumble

All over America, we have seen the insane prices of gas going up. Although many people want to blame the government for the increased prices, the problem is a lot bigger than the government. Even the gas prices in Canada are hitting record-high numbers. From COVID aftershocks to the Ukraine conflict, there’s a near-endless number of reasons why the economy and, more specifically, oil are suffering.

One major reason is that companies are not in a rush to mine oil because they know that less product means higher prices. Companies started to limit how much they invest in new production so they can reward their investors and buy shareholder buybacks. This way, they are making way more money than they were before the pandemic. In fact, during the first three months of 2022, the top oil companies Shell, ExxonMobil, BP, Chevron, and ConocoPhillips, brought in more than 300% more than in the first quarter of 2021. In that same period, almost 28% of Americans spent $35 billion on gas, which is equivalent to how much profits these companies made. Currently, oil prices have tumbled, with the U.S. benchmark falling below $100 as recession fears grow. Specifically, there appears to be fear that an economic slowdown will cut demand for petroleum products.

What do you think about the drop in oil prices and is it making you worried?

I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.

Share:

More Posts

What is a kids brokerage account?

A kid’s brokerage account is more accurately called a custodial account. This is a brokerage account that parents or legal guardians can open on behalf of their child.

Poll: Bailing Out the Banks 🏦

This week, we asked the Invstr Community, “Do you think the government should have stepped in and covered all deposits over the FDIC limit of $250K at Silicon Valley Bank?”

Get your daily Invstr Crunch

Get the market news and updates you need, delivered to your inbox or available on our daily podcast.

Risk Disclosure:

Invstr is not a bank and banking services are provided by Vast Bank, N.A.

Brokerage and Banking services are currently only available to U.S. residents.

Invstr app and web services are provided by Invstr Ltd. Advisory services are provided by Invstr Financial LLC, an investment adviser registered with the Securities Exchange Commission (SEC) details of which can be obtained here. Securities brokerage and custody services are provided by Apex Clearing, a broker dealer registered with the SEC and a member of FINRA and SIPC. There is no bank guarantee on securities and securities may lose value.

Investing involves risk and can lead to losses. Past performance does not guarantee future results.

Invstr app and web services are provided by Invstr Ltd. Invstr+ advisory services are provided by Invstr Financial LLC, an investment adviser registered with the Securities Exchange Commission (SEC). Securities brokerage and custody services are provided by Apex Clearing, a broker dealer registered with the SEC and a member of FINRA and SIPC. There is no bank guarantee on securities and securities may lose value. Vast Bank N.A. a nationally chartered bank and member of the FDIC, provides the banking products, including the products and services related to digital asset accounts. As with any asset, the value of Digital assets can go up or down and there can be a substantial risk that you lose money buying or holding digital assets. You should carefully consider whether trading or holding Digital assets is suitable for you in light of your financial condition. Your digital account does not support wallet to wallet transferring of your digital assets (i.e. cryptocurrencies) outside the platform. Any Digital Assets in your digital asset account are not insured by any government entities, including but not limited to FDIC or SIPC. The Invstr Visa® Debit Card is issued by Vast Bank, N.A. pursuant to a license from Visa U.S.A Inc and may be used everywhere Visa debit cards are accepted. Invstr Ltd, Invstr Financial LLC and Invstr Securities Ltd are subsidiaries of Marketspringpad Holdings (collectively “Invstr”) and Invstr is solely responsible for the application services and website content.

Watchlists provided when users first access the service are not a recommendation to invest. Instead they are provided to help users better navigate the service. Users are free to edit and create their own watchlists. From time to time, Invstr will suggest instruments solely based on an individual’s interest and the interest levels of the Invstr community.The statistical and portfolio builder models generated by Invstr do not reflect actual investment results and are not guarantees of future results.Comments provided by Invstr leaders, influencers or members of the Invstr Community are not recommendations and should not be construed as such.Invstr does not endorse the content or the positions posted by them. Their investment approach, and that of the models provided by Invstr, may be different from yours and may not be appropriate for you.