XOM
NATGAS
Oil stocks usally follow natural gas and the price of oil pretty closly.
this makes sense since they sell oil and if the price of oil goes down then should the stock selling that oil.
recently this has not been true as the price of oil and Natural gas have fallen Oil companies are not falling but why??
i belive this is because of very high profits which they got when the price of oil was high
and also investors thinking that the price of oil will rebound
i think oil is over bought as the underlying asset is down but the Stocks selling those assets arent
Not Financial Advice just an opinon
fell free to Correct me on any of my points if i didnt see something
Comment:
meant to say Oil stocks are overvalued not oil itself