Crude Oil Comeback

Overview

After falling from over $100 a barrel to its low point of $26 in February 2016, prices for crude oil have now risen to about $50 a barrel. While that’s nearly a 100 percent increase, oil is still comparatively cheap. But the current state of crude oil also necessitates a look at other investments that move with the price of oil—directly or indirectly. Has the roller coaster of oil’s descent and its subsequent climb out of the abyss hit a plateau? And, if so, what does this mean for producers, the lenders that previously supplied the money to support them, and oil-related master limited partnerships? Investors should take notice now of how crude oil pricing could affect related investment opportunities.

Advisor Thinking