The gap between the oil stock prices and declining WTI crude oil spot prices has widened, suggesting more volatility ahead in a market that is becoming less attractive as it gains more bad publicity among environmentalists.
This widening gap is reminiscent of the same cadence in 2015, as the stock maintained much of its optimism as the spot prices cratered by nearly -70%.
But it may be nearer to the 2008 cadence, with the stock belatedly closing the gap by 2010, before resuming the previous correlation afterward.
OPEC+ and Saudi Arabia’s production decreases have done little to change general malaise compared to the hyper-pandemic heights of $114 per barrel.
