What falling oil prices mean for the markets When it comes to declining oil prices, a familiar cycle often plays out. - Reduction in capital expenditure: Low prices stall production and projects get postponed.
- Cheaper oil increases demand: Less oil supply means prices increase again.
What it means for you as a trader? I say if the oil companies start to really struggle, then let some of them go bankrupt. It's good for the industry as a whole. The major players will survive and gobble up the smaller players. Which is what happened in 2020. It's also a good opportunity to find hidden value energy companies nobody's talking about that could weather the storm. When it comes to finding valuable oil plays flying under the radar, I always tell traders to focus on companies with hidden assets. The truth is... companies in the oil and gas sector have tremendous assets. But many of them are already well-known. YOUR ACTION PLAN There's one company with assets that I believe is tremendously undervalued right now. It's currently boosting American energy production by working with the best-performing AI company of 2024. The only reason it's cheap is because few people know it exists. Click here to unlock my latest "Unicorn" pick. |
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