/biz/ - Business & Finance

>>55672160
>Does increased oil price mean oil stocks goes up?
yes. Why wouldn't that be the case?
In fact for oil stocks the effect is compounded because the cost of operations isn't exactly zero. For example, if Oil prices are at a dollar above the cost of business+other expenses per barrel and then goes up another dollar, the oil company is effectively doubling their profit as they are making $2 per barrel instead of $1. A side effect of the cost of production being nonzero.