THE FATHER BLOG

The price of a barrel is $100…now it’s $95…oh wait…now it’s $110! What does all this have such an affect on the stock market?

It has everything to do with certain sectors of the market. Do your due diligence once again…this actually isn’t rocket science.

Here is a quick little reference guide:

The price of oil has a big influence on the stock market because oil is one of the most important inputs in the global economy. When oil prices move, they affect company costs, consumer spending, inflation, and economic growth. Here are the main reasons:

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1. Company Costs

Many companies rely heavily on oil or fuel.

Examples:

• Airlines like Delta Air Lines
• Shipping companies like FedEx
• Manufacturers like Ford Motor Company

When oil prices rise:

• Fuel and transportation costs go up
• Company profits shrink
• Their stock prices can fall 📉

When oil prices fall:

• Operating costs drop
• Profit margins improve
• Stocks may rise 📈

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2. Consumer Spending

Higher oil prices usually mean higher gasoline prices.

If people spend more at the pump:

• They have less money for other things
• Retail, travel, and entertainment companies may suffer

Example companies affected:

• Walmart
• Amazon

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3. Inflation and Interest Rates

Oil prices affect inflation because energy is used in almost everything:

• transportation
• manufacturing
• food production

If oil rises sharply:

• inflation increases
• the Federal Reserve may raise interest rates

Higher interest rates often push stock markets lower.

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4. Energy Sector Stocks

Some stocks move with oil prices.

Oil companies often rise when oil rises, for example:

• ExxonMobil
• Chevron Corporation
• ConocoPhillips

These companies make more profit when oil prices are higher.

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5. Signal of Global Economic Health

Oil demand reflects how strong the global economy is.

• Rising oil demand → strong economy → bullish stocks
• Falling demand → economic slowdown → bearish stocks

I’m not sure I did anything special this week to completely avoid Jury Duty, but I did it.

I was actually never even called to report to the courthouse and that was the luck of the draw because I had a very high juror number. They will always start from the lowest number on Monday and work their way up as they need people to report. Luckily, having a number around 01350 when they start at 00003 allowed me to escape being called and it also meets the requirement….so they can’t call on me for another 3 years.

Somebody will read this and say “you should be happy to do jury duty and do your civil responsibilities”. Maybe…but you would be in the minority. HAHA.

So felt like a win for me this week. Enjoy the weekend everyone!

I haven’t watched much of the World Baseball Classic this year, but as I look at the playoff brackets today, I’m a bit surprised.

First off, I say “a bit” because the rosters are not pure rosters from players born in those particular countries. But even so, seeing bracket winner Italy shocked me as they have gone undefeated in pool play. Team USA was the runner up in that bracket and will play Pool A Winner….Canada. What? Isn’t our national pastime baseball? Yes it is. But I guess the USA hockey team just beat Team Canada in the Olympics, so I guess they get a small chance to return the favor.

Either way, here are the brackets:

Enjoy a little baseball before official MLB opening night on March 25th.