The stock market doesn’t consider oil ought to be $50

Oil natural gas drilling

Oil natural fuel drilling
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The fee of U.S. crude is up extra than 34 percent this 12 months, trading briefly above $50 a barrel Thursday morning. but stocks of U.S. strength corporations in the S&P 500 are up simply over elevenpercent 12 months to this point. based totally on the ancient correlation of the 2, either crude oil isovervalued or power stocks are a screaming buy right here, in step with Convergex leader marketstrategist Nicholas Colas.

it appears that evidently equity investors are certainly skeptical that the present day flow in crude is sustainable,” Colas wrote in a be aware. “Crude is buying and selling at new highs for 2016, whilst themassive cap energy sector is not. One of these charges is incorrect.”