The Sector Has Reversed

We’ve all heard it before.

High oil prices tend to precipitate out recessions, or maybe a depression in our case (not advice, not a recommendation).

When looking at XOP, a proxy for the Oil & Gas sector, it appears to be front-running a decline in oil prices.

Or, possibly a decline in demand.

There’s also a familiar repeating pattern.

Oil & Gas Exploration XOP, Weekly

Once nuance to note:

Continued hostilities in the Middle East, along with oil tankers being sunk, do not seem to be materially affecting the (already high) price of oil.

Stay Tuned

Charts by StockCharts, TC2000

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