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Oil Is Up, But Oil Stocks End Down for the Day

Posted on Wednesday, July 2nd, 2008 | In Current Market News, Energy Markets, Gold Markets
Contributed by: Sean Brodrick (http://blogs.moneyandmarkets.com/blog/red-hot-energy-and-gold) -

Even oil stocks couldn’t dodge the
carnage in the broad market today. Oil stocks sold off a bit this
morning as oil prices moved lower. But then when oil prices moved
higher — buoyed by bullish inventory data – oil stocks didn’t rise with crude. Instead, they were sucked lower as the major indices went into the tank.

Take a look at the IEO, a leading index of oil explorers and producers …

I know this can be disheartening, but try to
separate short-term noise from the fundamentals. Investors are spooked
by the bear market going on in banks and other non-energy sectors. So,
they booked gains where they could find them and went to sit on the
sidelines. While I don’t blame them, the longer-term trend for energy
stocks should follow energy … and that’s higher.

Last 5 posts by Sean Brodrick





About Sean Brodrick (http://blogs.moneyandmarkets.com/blog/red-hot-energy-and-gold)

Sean Brodrick joined Weiss Research in 2000 as an analyst, bringing more than 25 years experience as a journalist and financial analyst to the position. He is Weiss Research’s small-caps specialist, especially in natural resources, and is the editor of the company’s Red-Hot Canadian Small-Caps, as well as a regular contributor to its daily e-letter, Money and Markets.

Previously, Mr. Brodrick was the investment director of The Sovereign Society, the world’s leading publisher of offshore asset protection strategies and global investment opportunities.

Recognized for his expertise on natural resources and Canadian and Australian investment opportunities, Mr. Brodrick has been featured on many financial talk shows, including CNBC Squawk Box, Fox Business, CNN, The Glenn Beck Show, Your World with Neil Cavuto and Bloomberg Market Line. He is a weekly guest on Market Matters Radio, a contributing columnist to MarketWatch.com and a frequent commentator on one of Canada’s premiere financial websites, HoweStreet.com. His report, “70 Days to Empty,” has garnered acclaim for its analysis of the forces pushing America toward its next oil crisis and was described by The Daily Reckoning as “the most important report you’re likely to read this year,” while his knowledge of uranium has helped investors earn solid gains on the commodity.

Mr. Brodrick holds a B.A. degree from the University of Maine.

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