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The Great Oil Recovery

Oli reached unbelievably low levels a few days, the markets seemed to agree, rebounding more than 16% today. In the past today’s oil has risen close to 40 percent. These huge gains are only the beginning. Over the next 8 months, I believe oil will outperform the broader market. Instead of having to worry about a hit to earnings or profits, the principal concern with oil is simple: Supply and Demand. These two concepts are easy to understand. Instead of worrying how employment will respond to the fiscal and monetary stimulus, all you have to worry about is a return in demand. THAT’S ALL. A much easier task then predicting macroeconomic trends. Regardless, it’s clear oil is still priced cheaper then water in some parts of the United States. That fact alone should be enough to bet on oil’s recovery.

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