Yes, and like always, it will overdo it on the low side too.
That brings opportunities. I bought a little energy today, with a yield of around 4.40%. I’ll keep buying from here for a while, whether things are going up, down or sideways. The various governments that control the bulk of world energy resources can’t operate at $40ish a barrel for long, with the exception of the US. $40 will slow private production soon.
Interesting thing is, price has been dropping for a while and lately accelerating. But American rig counts went up last week. The players who are drilling expect higher prices and fairly soon.
XOM? I'm looking at that again. Never missed a dividend since 1882.
I should buy some energy soon as well. Everything I holod in energy was bought when oil prices dipped below $30/barrel.
What ever happened to peak oil? The world is now swimming in oil with fracking procedures. And that in spite of Iran is constrained to sell and Venezuela is a mess.
The cheapest oil production costs were in Saudi Arabia. I remember a couple of decades back, it cost them $2/bbl to pump oil out. No exploration costs in Saudi. There are vast fields all over the place. May be with inflation it is now $10/bbl to pump oil.