How does the price of crude oil affect the price of oil related stocks?
I was just wondering if high crude oil prices make stock prices like exxon mobil rise or fall.
I was just wondering if high crude oil prices make stock prices like exxon mobil rise or fall.
December 1st, 2009 at 10:02 pm
It depends on their refining margins. Thats the difference between what they can buy or produce the oil for and what they can sell their refined products for. The bigger the difference the more money Exxon can make and the more they should be worth. But if oil prices increase and the profit margins on their refined products decrease that would probably cause the stock price to decrease.
December 1st, 2009 at 10:02 pm
Assuming all other factors to be STP, the stock of an integrated oil company would rise.