StockTalk (5.8): Oil prices creep higher as recession fears begin to fade - What will be the future?
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Today's topic is about oil prices.![]()
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8 points for all mooers who participated in the poll below.
88 points for mooers who share their insightful ideas by commenting down.
StockTalk (5.8): Oil prices creep higher as recession fears begin to fade - What will be the future?
Oil prices rose slightly on Monday as traders remained cautious despite receding fears of a recession in the U.S. Goldman Sachs analysts also weighed in on the matter, stating in a note that worries surrounding near-term demand due to issues in the U.S. banking system and an industrial slowdown, along with elevated global supply resulting from limited compliance with OPEC+ cuts, were "overblown."
A recovery in global crude oil prices can significantly impact Singapore's economy, which heavily depends on the energy sector and serves as a central hub for oil trading activities. Fluctuations in oil prices can directly affect the cost of goods and services within the economy while indirectly impacting the Singapore stock market by raising production costs and reducing spending power.
However, higher oil prices may also increase investment in oil-related stocks and companies, boosting market performance. Changes in oil prices can also affect the commodity futures market and derivatives products traded in Singapore. Investors should stay informed and take a long-term view to make informed decisions that align with their goals and risk tolerance.
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Join us and share your thoughts on today's topic. Is the recovery in oil prices indicating a more stable economy and boosting investment confidence? Please leave a comment below to share your opinion with us. Your feedback is valuable, and we appreciate your participation.![]()
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kennykent 1 : Gold
Tojj : Oil price recovery definitely symbolises the recovery of the economy. People feel safer to spend more on wants than needs which will help the economy to grow as well. #Supportforeconomygrowth
Moomoo SG OP : Come and join the discussion to win the points!![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
ZnWC : Oil price is a complex things not affected by one factor or single event. Just to name a few: Ukraine -Russia War, US dollar strength and weakness, renewable energy alternative, US oil reserves etc. Hence it cannot be used as a guide that economy is stablising. Recession can also trigger a oil price surge - stagflation.
Invest in value stocks or etfs that are resilient to inflation (induced by oil price) and take long position. I won't leverage or short sell - too risky for me. Artificial intelligence related stocks are one of my choice pick.
费北敬 : Gold might be the next opportunity
GodSpeed289 : It can be an indicator but not necessarily a definitive. Unless it is a sustained one, there are also other contributing factors like global supply and demand, geopolitical events, and changes in government policies, causing short-term fluctuations in oil prices. Nevertheless, when oil prices rise, the logical investment strategies would be to invest in refining & energy companies and oil related ETFs, which generally can be volatile.
70208943 : I'm a newbie to investing, but there are a number of factors to consider, especially as laws are being passed to reduce carbon emissions and a focus on sustainable measures - the claim is "becoming less dependent on fossil fuel" or "diminishing resources". The EV market is definitely getting a boost, but time will tell how committed we're really are in taking care of our environment. In the interim, people are playing posum with these oil prices to make money.
Demascus : Black Gold is here to stay for time being, as the full switch to renewables will take a decade at the very least. Therefore, I'm planning to allocate some funds into $Occidental Petroleum (OXY.US)$ soon.
EYSY : It has been said that oil price has a high correlation with global economic outlook. For one, booming economic growth will drive up demand for oil and thus increasing oil price. If that was the reason for high oil price, then recovery of oil price indicates a more stable economy.
However, oil price could also increase due to limited oil supply issue. For example, oil price increases due to geopolitical tensions where an oil producing country is involved.
Hence, whether recovery in oil prices indicates a more stable economy depends also on the reason the oil price increase.
Xixi29 : When oil price starts to increase, this may lead to Recession. It may seems good to invest in oil, however, with EV gaining popularity, and backed by many uncertainties for the oil price increase, it will be safer to watch first and invest in gold or less volatile etf.