.png)
Oil prices went on a wild ride in 2018. After starting in the $60s, the price of crude oil would rally throughout much of the year, hitting a four-and-a-half-year high in early October, with the global benchmark, known as Brent, peaking at $86.74 a barrel. Those higher crude prices enabled oil producers to generate significantly more cash flow than expected, which benefited their shareholders while causing Wall Street to become momentarily enamored with the sector. However, that all came crashing down during the fourth quarter as crude tumbled back toward $50 a barrel, dragging oil prices down by double digits for the year. Thus does the energy industry enter 2019 at a crossroads, with a nagging need to rein in oil production to keep prices from continuing to fall. Any investor thinking about putting money in the oil and gas sector should understand where the sector has been to foresee where it could go in the future. Here’s a look back on what caused the year’s intense price volatility in the oil market, as well as how it affected the operations and profits of publicly traded oil companies in 2018. Image source: Getty Images. OPEC agreed to continue providing […]
