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Oil’s inherent volatility leads many investors to overreact—piling into energy stocks when prices spike and fleeing at the first sign of a drop. This short-term mindset seldom pays off because oil is influenced by countless factors, from geopolitics to production decisions and economic cycles.
Despite headlines about renewables, fossil fuels remain essential for AI data centers, global manufacturing, and massive infrastructure projects. US producers also provide a stabilizing force by ramping up supply whenever prices run too high, making this a far cry from the days when OPEC alone set the tone.
The takeaway? Quit treating oil (CL=F, BZ=F) like a lottery ticket. Instead, focus on companies poised to thrive through all market phases—refiners, pipeline operators, and diversified firms. By recognizing oil’s continued importance and the industry’s structural shifts, you’ll be better positioned for long-term gains over short-lived swings.
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This post was written by Langston Sessoms.