Home Logon FTA Investment Managers Blog Subscribe About Us Contact Us

Search by Ticker, Keyword or CUSIP       
Blog Home
Bob Carey
Chief Market Strategist
X •  LinkedIn

  You are right if you think the oil industry is a "rigged" game!
Posted Under: Sectors
Supporting Image for Blog Post


View from the Observation Deck

  1. If you want insight into the oil industry there are better ways than the nightly news. Follow the number of active rigs. A simple Web search for the Baker Hughes active rig count (U.S. or World) should locate it for you.
  2. Crude oil prices rose from $19.48 per barrel on 1/31/02 to $98.48 on 1/31/12. Over that 10-year span, the number of active rigs rose from 2,016 to 3,751 worldwide.
  3. Notice how the number of active rigs plunged during the 2008 global credit crisis and U.S. recession? The price of a barrel of oil plunged from $145.29 on 7/3/08 to a 2008 low of $33.87 on 12/19/08, according to data from Bloomberg.
  4. Even if one isn't familiar with how the price of oil can be influenced by the Fed's monetary policy, wars in the Middle East, or investors speculating in the futures market, they can count on the number of active rigs to paint a reasonably accurate picture.

Posted on Friday, March 2, 2012 @ 1:51 PM • Post Link Print this post Printer Friendly

These posts were prepared by First Trust Advisors L.P., and reflect the current opinion of the authors. They are based upon sources and data believed to be accurate and reliable. Opinions and forward looking statements expressed are subject to change without notice. This information does not constitute a solicitation or an offer to buy or sell any security.
Search Posts
Market Commentary and Analysis
Market Commentary Video
Monthly Talking Points
Quarterly Newsletter
Market Observations
Subscribe To Receive Email

How do you want to own Energy?
Answers to Investors' Questions
In Search of the Next "Big Thing"
Financial Stocks Off to Good Start But Near-Term Hurdles Persist
Watching Investor Activity
It's "RISK-ON" For Investors So Far In 2012
Municipal Bonds Offer More Value Than Treasuries
Institutional Capital is Driving the Stock Market Higher
Don't Let One Bad Year Keep You From Owning Foreign Equities
Strategic Insight Into Valuations
Skip Navigation Links.
Search by Topic
Skip Navigation Links.

The information presented is not intended to constitute an investment recommendation for, or advice to, any specific person. By providing this information, First Trust is not undertaking to give advice in any fiduciary capacity within the meaning of ERISA, the Internal Revenue Code or any other regulatory framework. Financial professionals are responsible for evaluating investment risks independently and for exercising independent judgment in determining whether investments are appropriate for their clients.
Follow First Trust:  
First Trust Portfolios L.P.  Member SIPC and FINRA. (Form CRS)   •  First Trust Advisors L.P. (Form CRS)
Home |  Important Legal Information |  Privacy Policy |  California Privacy Policy |  Business Continuity Plan |  FINRA BrokerCheck
Copyright © 2024 All rights reserved.