/biz/ - Business & Finance

>>52546279
>Oil was 122.11 a barrel on 6/8. It's 79 now and your cope is that it won't go under 67
do you know what price per barrel the oil companies are producing at?
in the US it's about $36 a barrel
they are producing at $36, selling at $67 in this example
>NOOOOO!!!!111one THESE MARGINS ARE AWFUL!!!!1111one
the energy sector is ~4% of the weight in the S&P500
prior to 2014 it was 7%
in 1980 it was greater than 20%
energy sector was underinvested in, under utilized, under appreciated for more than 20 years
this doesn't unwind in a single month or a single year
don't get me wrong - XLE is overextended here in relation to the price of oil, and it will give back
but that is a dip that you are meant to buy, not one that you should sell