Daily Gains Letter Announces Top 3 Sectors That Will Profit from Weak Oil Prices
Daily Gains Letter reveals the three sectors that it expects to profit from weakened oil prices.
New York, NY, United States – March 26, 2015 /MarketersMedia/ —
Daily Gains Letter (www.DailyGainsLetter.com), an e-letter published by Lombardi Publishing Corporation, a 29-year-old consumer publisher that has served over one million customers in 141 countries, is announcing the top three sectors that will profit from weak oil prices.
“Currently trading near $47.000, oil prices have fallen 55% since the beginning of July and we could see West Texas Intermediate oil decline to the $40.00 level and below,” says financial analyst George Leong. “A few years ago, the mere mention of oil in the $30.00 level would have been viewed as silly, as many believed $100.00-a-barrel oil prices would be the norm.”
Leong explains that part of the problem with $100-per-barrel oil is that advanced fracking techniques have led to a revolution in oil production, which is hurting oil prices. The good news is that it’s creating an investment opportunity for aggressive investors.
The influx of shale oil from domestic production in Montana and North Dakota has helped flood the market, so much so that the ability to store the excessive oil will likely not be possible, which means continued cuts in rigs and production. According to Baker Hughes, more than 800 rigs have been shut down, and based on the growing stockpiles, hundreds of additional rigs could be axed—thousands if oil prices stay at the $40.00 level. (Source: Udland, M., “US oil rig count falls to lowest since March 2011,” BusinessInsider.com, March 20, 2015; www.businessinsider.com/baker-hughes-rig-count-march-20-2015-3.)
“A move of oil prices down to the $30.00 range could provide an aggressive investment opportunity to accumulate some of the major oil stocks and hold them for the long term, hoping oil prices rally back towards the $70.00–$80.00 level,” Leong adds. “To play the weaker oil prices, investors can also play the sectors that benefit from weaker oil prices, such as the transportation sector or stocks on the Dow Jones Transportation Average.”
“Sectors that are rallying on the lower oil prices include the airlines, airline makers and suppliers, trucking companies, and parcel delivery companies,” Leong concludes. “Unless the demand side surges or the supply side plummets, the lower oil prices are here to stay for a few years, which is good news for the transportation, travel, and delivery sectors.”
For more information on Daily Gains Letter, visit www.DailyGainsLetter.com. Founded in 1986, Lombardi Publishing Corporation, which has served over one million customers in 141 countries, is one of the largest consumer information publishers in the world. For more information on Lombardi Publishing Corporation, visit www.lombardipublishing.com.
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