Commentary 
An oil price and energy stock price reversion may be starting. The reason is that oil price reversions are the inevitable outcome of economic recessions. Of course, such is due to the previous price spikes that create demand destruction in the economy.
The chart shows the price of oil since 1946.
Source: St. Louis Federal Reserve Chart by: RealInvestmentAdvice.com
Higher oil prices benefit oil companies by making the extraction process more profitable. However, there is also a negative impact on the economy.
“High oil prices add to the costs of doing business which pass, ultimately, on to customers and businesses. Whether it is higher cab fares, more expensive airline tickets, the cost of apples shipped from California, or new furniture shipped from China, high oil prices can result in higher prices for seemingly unrelated products and services.” – Investopedia…