The Hype Around Dangote Oil Stock – What You Should Know Before Investing
Global oil prices have a strong impact on oil stocks. Previous oil crashes severely affected several oil stocks. For example: • 2014 – 2016: Oil crashed from $106 to $28 • 2020 COVID crash: Oil fell from around $60 to as low as $20 (and briefly to – $37 in one futures contract) This week, US Oil hit $100 and is currently trading around $99. This rally has been triggered mainly by two major conflicts: • The Russia – Ukraine war • Escalating US – Iran tensions These events have caused: • Disruptions in oil supply • Attacks on oil and energy infrastructure in Russia • Sanctions on Russian oil • Threats of closure of the Strait of Hormuz • A US naval blockade During the 2014 – 2016 crash, oil stocks and ETFs fell sharply. Examples include: • Stocks: Chevron, ExxonMobil, Schlumberger (SLB), and others • ETFs: XLE (Energy Select Sector SPDR), United States Oil Fund (USO), and simil...