Over the last couple of weeks, we have been seeing a resurgence in the price of oil, with reports that China will do everything to keep their growth at 6-7% per year.
In addition, there have been reports that some of the world’s oil powers are strongly considering reducing their oil output, which would help alleviate the high inventories.
The real power however, lies in the hands of Wall Street juggernauts like Goldman Sachs
This morning, I was reading a report by Steve Randall in the WP lamenting about how oil stocks are now slipping back.
He reported that the decline was ignited by Goldman Sachs who warned “that only a real physical deficit can create a sustainable rally which is still months away should the behavioural shifts created by the low prices in January and February remain in place.”
All this to say, that when inventories come down, oil prices will go up.
I agree that logic dictates what Goldman Sachs has stated is true, however, what I do know is that we now have an opportunity to invest in great oil companies at great discounts and its best to ignore Wall Street and invest today.
INVEST INTELLIGENTLY. LIVE WELL.
Source: www.wealthprofessional.ca.
12 March, 2016