Dow components Exxon Mobil Corporation and Chevron Corporation have underperformed throughout 2017 but could lift into market leadership in 2018, underpinned by a resilient crude oil market and strong U.S. economy, supercharged by tax cuts and deregulation. However, buying these stocks too early could be hazardous to your bottom line because end-of-year tax selling may inhibit buying power until the calendar flips in January.
The WTI crude oil contract has lifted to a two-year high and could soon test resistance in the lower $60s. Meanwhile, OPEC and Russia have just agreed to extend oil output curbs through the end of 2018, allowing U.S. energy companies to benefit from higher commodity prices as well as ramped-up production levels because our government has not agreed to similar cuts. Taken together, energy stocks at all capitalization levels could finally enter bull market advances. (See also: A Guide to Investing in Oil Markets.)
Exxon Mobil and Chevron could benefit from higher crude prices, less foreign competition, deregulation and a strong U.S. economy. …read more
Read more here: Big Oil Set for 2018 Bull Market
Category: XOM, CVX