Oil Has Made Big Moves Above and Below $100. Expect That to Continue.

The price of oil is a watch item due to the ongoing conflict in the Persian Gulf and the closure of the Strait of Hormuz. Prices have been extremely volatile, spiking back above $100 per barrel as of May 20. While short-term traders with impeccable timing are speculating on every piece of newsflow pertaining to an imminent "deal" or a forthcoming escalation in the conflict, there are critically important considerations for long-term investors, too. One of them is the possibility of higher-for-longer oil prices. Here's why that's a real risk.Short-term fluctuations aren't anything new to the commodity markets. They occur frequently and are often forgotten within a few months. However, what really matters is a sustained move in oil prices, particularly if it's due to a structural issue.Image source: Getty Images.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool