Can a Negative be a Positive when it comes to oil prices?

Do you remember back in 2020 when all the news outlets reported that oil was going to negative prices? It was reported that oil companies were outdated and useless. Because the price of oil was so low it was an indication that electricity is the future and we need to get into electric cars as soon as possible. If you don't remember check out the video below from CNBC

Yes, it is true that oil prices dropped extremely low. The price on the chart below shows that oil prices in 2022 were about $20 per barrel which was the same as in 1997.

Ok, so what does this mean? Does it mean everybody should go buy a Tesla? All this scary news about oil being negative, why is the news media telling us this? Just like you, we didn't know what to do with this information either. So we said let's test it out and see what we find. If we look at oil prices today, as of November 2022, the price of oil is around $97.93. It was as high as $140 at the beginning of 2022 compared to $20 in April 2020.

In April 2020, we took a snapshot of oil prices from several companies. We selected companies from the United States and around the world. The goal was to come back later and see if the scary news regarding oil being negative really had any impact. Noticed the April 2020 price is outlined in red for each company.

Now, let us compare the company's stock prices to where they are today in 2022. Here is a short example of several of the company's price changes in a chart. The chart makes it easier to see how the price has changed over the last 2 years.

SSL - Previously $3.17 / Now $17.23

EQNR- Previously $12.49/ Now $38.31

IMO- Previously $12.71 / Now $57.14

XOM - Previously $42.31 / Now $113.49

Result: A few of the oil companies on the list (3 or 4) went out of business or became delisted. (Click here for the definition of "delisted") The majority of the oil company's prices went up and doubled from 2020 to 2022.

Big Idea: Is negative news really negative? You tell me what you think. At IDEASWORTHTRADING we think a little skepticism is a good thing. Go do the research and get educated. Maybe check out an investment book or class at your local college. Just an idea. Until next time, Keep Sharing IDEASWORTHTRADING