The expected decline in oil prices is more important than just the relative decline in share prices of energy-related stocks. As I wrote previously, energy prices are highly correlated to economic activity……Since then, the price of oil has declined further as economic weakness continues to gain traction globally. Despite the occasional rally, it’s hard to see the outlook for oil is encouraging on both fundamental and technical levels. The charts for WTI remain bearish, while the fundamentals remain basically “Economics 101: too much supply, too little demand.” The parallel with 2014 is there if you want to see it.
