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Our Deep-Dive Outlook for Oil

By Elliott H. Gue on Dec. 19, 2018

Since the end of September, WTI and Brent oil prices have experienced one of the most violent and rapid sell-offs in history.

Over the short term, energy stocks typically follow commodity prices particularly on the downside. Thus, the S&P 500 Energy Index is off 19.6% this quarter, the Alerian MLP Index is down about 12.8%, the SPDR Oil & Gas ETF (NYSE: XOP) is down 34.8% and the Philadelphia Oil Services Index (OSX) has plummeted over 40% led on the downside by the deepwater and onshore contract drillers.

We continue to believe the macro picture for oil – rather than company-specific fundamentals and earnings prospects – has been the primary driver of downside for Energy & Income Advisor recommendations this quarter. Similarly, a stabilization and eventual rally in oil prices will ultimately prove the catalyst for a bottom in the group and subsequent recovery in prices.

In this issue we take a deep dive into the fundamentals of the oil market and our outlook for crude oil into early 2019.

Energy & Income Advisor

Your complete guide to energy investing, from growth stocks to high-yielders.

In October 2012, renowned energy expert Elliott Gue launched the Energy & Income Advisor, a twice-monthly investment advisory that's dedicated to unearthing the most profitable opportunities in the sector, from growth stocks to high-yielding utilities, royalty trusts and master limited partnerships.

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      Balanced portfolios of energy stocks for aggressive and conservative investors.

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      Our take on more than 50 energy-related equities, from upstream to downstream and everything in between.

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      Our assessment of every energy-related master limited partnership.

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    Experts

    • Elliott H. Gue

      Founder and Chief Analyst: Capitalist Times and Energy & Income Advisor

    • Roger S. Conrad

      Founder and Chief Analyst: Capitalist Times and Energy & Income Advisor