Good news! Oil has finally rebounded and increases in value by 12% while the stock market scored huge gains last Friday. Each sector is said to have advanced led by energy and financial ones. Even the Dow Jones industrial average heightened by 314 points. They say it's still too early to tell but I hope this could be a sign that the market is now recovering from the oil meltdown we have been experiencing for the past few months. It is a good sign that people are still confident with the stock market and many are still willing to invest money despite the pitfalls of this industry. Here's the article for a more detailed reading: http://www.cbc.ca/news/business/markets-stocks-1.3445793
That's the life of the stock market. After a steady decline, the prices stabilize for a time before going up again. However, the increasing price of oil in the stock market may not be related to the actual prices in the world market. Venezuela is trying its best to push the oil prices up since their economy is largely dependent on the price of petroleum products. So maybe this increasing prices of the shares of oil may be due to some manipulation that is temporary in nature. If Saudi Arabia would pump in millions in the stock market then the energy stocks will naturally gain.
You really want to start talking about a recovery (what ever it is that you are referring to as being in recovery) based on a single day? Meh, everyone does it how they want to but lets just say that to me making long term predictions based on the results of one day is kinda pushing it.
This is just a slight gain in one day. I wouldn't jump the gun and start investing in oil just yet with the grace of a slight improvement on a 24 hour period. Definitely give it time and watch where things go before giving it a green light to being a recovery or not, because if you start to make long-term investing actions or moves that tie you to long-term decisions, it will be a regretful move that can be very costly. I do hope that it is a sign of recovery, but I wouldn't suggest that it is just yet.
