Investors advised against chasing volatile oil prices and to focus on companies with stable revenue streams

From Yahoo Finance: 2025-04-06 12:00:00

In 2025, oil prices hit a five-month peak before plummeting to multiyear lows amid trade war fears, with WTI falling over 7% and Brent futures dropping over 6%, reaching levels not seen since 2021. Wall Street veteran Kenny Polcari advises against chasing oil prices due to market volatility.

Despite the push for renewables, US oil production remains near record levels, giving the country control over supply and keeping prices stable, according to Lou Basenese of Prairie Operating Company. He believes betting on the long-term outlook for oil is the best approach, as the US energy mix continues to rely on fossil fuels.

President Trump’s tariff program and China’s retaliation contributed to crude oil price declines as economic concerns and OPEC+ plans to increase supply added pressure. Despite geopolitical tensions, Polcari emphasizes that oil will remain a key economic driver, suggesting investors focus on companies with diversified revenue streams for long-term value.

On Trader Talk, Polcari advises against treating oil as a lottery ticket and instead recommends focusing on companies positioned to thrive regardless of market conditions, such as refiners, pipeline operators, and energy firms with stable revenue streams. Understanding the structural forces at play is key to navigating the oil market successfully.



Read more at Yahoo Finance: Why so many investors lose money in the energy trade