The 1 Word Every Energy Investor Needs to Understand Right Now
The investment world is going through tumultuous times right now, and nowhere are conditions more difficult than in the energy industry. Falling demand for oil due to the coronavirus pandemic began at the same time that major oil-producing companies like Saudi Arabia and Russia were starting to ramp up production, and the unprecedented results have included negative prices on near-term oil futures contracts.
Many investors go to where the action is, and that means a lot of people without knowledge of the energy markets are rushing in to try to profit. Before you start jumping into niche investments in energy that you don't fully understand, it's vital to familiarize yourself with how those markets work. That way, you can avoid rookie mistakes that could cost you more than you're prepared to lose.
Image source: Getty Images.
Source Fool.com
