Crude Oil Commodity Research Report
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Crude Oil Commodity Research & Analysis Report ► (edit / improve) Crude oil is used to produce fuel oil and gasoline. Gasoline is the largest supplier of fuel for internal combustion engines. Crude Oil Fundamental Commodity Analysis (short term investment): Crude oil is rated a Sell. Crude oil demanders have a moderate potential to increase in value and crude oil suppliers have a very high potential to increase in value. Crude Oil Value Investor Survey (long term investment): Crude oil’s long term growth potential is very favorable due to high scores on sensitivity to price changes, demand not sensitive to price changes, and the SWOT analysis. Crude Oil SWOT Analysis: Strength: Limited natural resource / supply; Weakness: Emits carbon dioxide. Opportunity to grow: the overall growth of vehicles will increase demand for crude oil; Threats to growth: environmental concerns could slow growth potential in the near term. Crude Oil Trade Analysis: The commodity analysis sell rating indicates that crude oil prices should decrease over the short term, whereas a very favorable investor survey means crude oil prices increase over the long term. For our entire list of commodities, see the Commodity Research & Analysis home page.
Investment Impacts (help)

Saudi Arabia Country & Currency Research Report ► (edit / improve) Saudi Arabia (SAR) is an energy export driven economy in the Middle East. Saudi Arabia's Fundamental Currency Analysis (short term investment): Saudi Arabia’s currency is overvalued with low investment flow potential and high purchase price potential. Saudi Arabia's Value Investor Survey (short term investment): Saudi Arabia’s economic environment is unfavorable for long term economic growth due to low scores on government transparency and economic diversity. Saudi Arabia's General Trading Partners: China, the EU, Japan, and the US are the top export partners, while the leading industry is related to energy. Saudi Arabia's Commodity Trading Partners: Saudi Arabia produces a significant amount of crude oil, gasoline, and propane for use as an export. Saudi Arabia is also part of the OPEC cartel, which adjusts the supply of oil to maintain price. SWOT Analysis of Saudi Arabia: The leading Saudi strength is their large oil supply, while the main weakness is their discriminatory problems. Economic cities have the opportunity to propel growth, while terrorism may lower growth. Saudi Arabia's Currency Trading Strategy: A overvalued currency, low investment flow potential and unfavorable business environment leads to a negative outlook for Saudi investments. For our entire list of country & currency analysis, see the Country & Currency Analysis home page.

USA Country & Currency Research Report ► (edit / improve) The United States (US) has a highly productive, capitalist economy and is the largest and most diverse market in the world. USA's Fundamental Currency Analysis (short term investment): the US dollar (USD) has the potential to increase in value especially versus the Australian and Canadian dollar because of the significant potential of undervalued companies. USA's Value Investor Survey (short term investment): the economic environment is very favorable for long term economic growth due to high scores on economic freedom and economic diversity. USA's General Trading Partners: China, Japan, Mexico, and Canada are the top US trading partners, while the leading export and import are electrical machinery and vehicles, respectively. USA's Commodity Trading Partners: The US produces a significant amount of coal and wheat for use at home and as an export. However, the US consumes a larger amount of oil, which contributes to their trade deficit. SWOT Analysis of USA: The leading US strength is its entrepreneurial culture, while the main weakness is high health care cost. Energy independence has the opportunity to propel growth, while the major threat is the housing crisis, which will lower growth. USA's Currency Trading Strategy: An undervalued currency, high investment flow potential and favorable business environment lead to a positive outlook for US investments, which will also benefit from positive international actions. For our entire list of country & currency analysis, see the Country & Currency Analysis home page.
Industry Investment Impact

Energy Industry Research & Analysis ► (edit / improve) The energy industry includes companies whose sales derive from the production and sale of energy related products and services such as the extraction, manufacturing, refining, and distribution of energy. Energy Value Investing Conclusion Based on WikiWealth's Wall Street analysis, this industry is a Buy, with strong potential for short term gains. The Main Street analysis says a Hold, with SWOT strengths great than weaknesses, but SWOT opportunities less than threats. Significant threats include the curtailment of energy use for environmental reasons. Energy Trade Hubs: Some of the main energy hubs include Saudi Arabia, Canada, Mexico, and Russia while the main energy commodities include coal, ethanol, gasoline, natural gas, crude oil, heating oil, palm oil, propane, and uranium. Energy Trading Strategy: Energy investments tend to be very sensitive to commodity prices. Speculation and market manipulation by governments affect the energy market, therefore, cautiously invest in companies with significant potential. Upward sloping stock charts and financial news may indicate a selling opportunity while the opposite means that stocks are becoming undervalued. For our entire list of industry research reports, including trends, statistics and ratios, click here: Industry Research & Analysis Home Page.
Industry Analysis evaluates the major industry characteristics that affect investments. Company specific factors drive the performance of individual companies, but macro-economic factors can affect the performance, stock prices, growth rates, and chart movements of any stock, currency, or commodity. All stock traders should review industry research before trading.
Warren Buffett Quote: "When a management with a reputation for brilliance tackles a business with a reputation for bad economics, it is the reputation of the business that remains intact." No matter the quality of your business, industry economics is an important factor in any value investing decision.
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Value Investing Importance?
A professional evaluations can cost between $150 to $15,000. In order to understand an investment, traders must research industry margins, stock prices, multiples, news, growth rates, stock chart, and any other relevant measurement to avoid mistakes.
| Description: The energy stocks includes companies whose sales derive from the production and sale of energy related products and services such as the extraction, manufacturing, refining, and distribution of energy (see full energy description: competitors, industry ratios, best stocks, market leaders, aggregate SWOT Analysis, and streaming industry news).
Profit Analysis: The best way to profit from energy stock investments is to find the most undervalued investments (Wall Street and Main Street buy ratings) during economic recessions. Those investments should be undervalued (see Wall Street on left side), and have high Main Street Common Sense investment ratings (see Main Street on right side). When an economic recovery occurs, energy stocks tend to outperform the general stock market, because general consumer demand increases.
Energy stocks are most sensitive to commodity prices, which are an indicator of future energy demand. Energy commodity speculators try to predict the demand and supply of commodities, but their generally set prices too high during economic expansions and too low during economic recessions. Therefore, the best time to make energy stock investments is during economic recessions. The best time to sell energy stocks is in the late stages of economic expansions, when energy stocks and commodity prices are above their fair prices. Expensive (overvalued) stocks with low Main Street Common Sense ratings should be sold at any time to invest in better stocks. Two buys ratings are the best and two sell ratings are the worst possible stock investments.
Trading Strategy: The energy stocks tends to be very sensitive to economic changes. Demand for energy is inelastic, so it does not easily change with changes in price. Therefore, changes in supply have a large impact on the price of fuel. Some sectors of the energy stocks require large investments over an extended period of time, which causes issues with adjusting energy supply with demand, so prices tend to be volatile. Energy stock prices tend to move in line with energy commodity prices. During economic recessions, consumers may decrease expenses slightly, but the majority of energy costs are not flexible, because they are needed for everyday living.
Since energy needs are inflexible, stock prices are less influenced by changed in the economy. However, commodity prices such as oil or natural gas have a direct impact on energy stock investments. Changes in commodity prices are a result of changes in supply and demand. Recently, oil prices increased, because of the demand for oil from emerging markets. Unfortunately, the global recession decreased growth estimates and demand until oil prices fell from 160 dollars a barrel to 35 dollars a barrel.
Part of oil price changes are do to speculation. When speculators increase the price of oil, many alternative sources of fuel become profitable. When companies make investments in these alternative sources of fuel, supply increases until energy prices start to fall. If prices fall too far, then the alternative fuel sources become less profitable and shutdown, which decreases demand. Stock prices rise and fall with energy commodity prices.
| Industry Statistics |
Stat |
Notes |
| Stock Research Rating |
Buy |
… |
| Potential (safety margin) |
64% |
High ~ Good for investors |
| WACC Discount Rate |
8% |
Low ~ Good for investors |
| Comparative Multiples |
Stat |
Notes |
| Revenue EV Multiple |
1.1x |
Low ~ Good for investors |
| EBITDA EV Multiple |
4.6x |
Low ~ Good for investors |
| EBIT EV Multiple |
5.5x |
Low ~ Good for investors |
| Cash Flow EV Multiple |
14.0x |
… |
| Book Value EV Multiple |
1.1x |
Low ~ Good for investors |
| Discounted Cash Flow (DCF) |
Ratios |
Notes |
| Revenue Growth |
21% |
High ~ Good for investors |
| EBITDA Margin |
28% |
High ~ Good for investors |
| EBIT Margin |
21% |
High ~ Good for investors |
| Cash Flow Margin |
5% |
… |
| Taxes Rate |
37% |
… |
| Debt-Equity Ratio |
22% |
Low ~ Good for investors |
| ROIC |
5% |
… |
| Reinvestment Rate |
15% |
… |
| WACC Discount Rate |
Rates |
Notes |
| Risk Free Rate |
4% |
Low ~ Good for Investors |
| Cost of Debt |
7% |
Low ~ Good for Investors |
| Equity Risk Premium |
5% |
… |
| Debt Required Return of Debt |
4% |
Low ~ Good for Investors |
| Required Return of Equity |
9% |
… |
1 WikiWealth only uses the largest 30 companies in each industry for the basis of these financial measures. Each statistic is the market weighted average of the 30 companies.
2 Investment potential (margin of safety) is a weighted average of the discounted cash flow (DCF), the enterprise value (EV) market multiple, and the Warren Buffett investment methods.
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Leveraged ETFs (US)
Energy Bull 3x ETF (ERX)
2x S&P Energy ETF (REA)
Inverse 2x S&P Energy ETF (REC)
US ETF Funds
S&P Equal Weight ETF (RYE)
SPDR Energy ETF (XLE)
Vanguard Energy ETF (VDE)
Non - US ETF Funds
Global Solar ETF (TAN)
Wind ETF (FAN)
iShares Clean ETF (ICLN)
iShares Nuclear ETF (NUCL)
Alternative ETF (GEX)
PowerShares Clean ETF (PBD)
PowerShares Wind ETF (PWND)
S&P Intl ETF (IPW)
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Major Crude Oil Producers ► Press "Edit / Improve"

Saudi Arabia Country & Currency Research Report ► (edit / improve) Saudi Arabia (SAR) is an energy export driven economy in the Middle East. Saudi Arabia's Fundamental Currency Analysis (short term investment): Saudi Arabia’s currency is overvalued with low investment flow potential and high purchase price potential. Saudi Arabia's Value Investor Survey (short term investment): Saudi Arabia’s economic environment is unfavorable for long term economic growth due to low scores on government transparency and economic diversity. Saudi Arabia's General Trading Partners: China, the EU, Japan, and the US are the top export partners, while the leading industry is related to energy. Saudi Arabia's Commodity Trading Partners: Saudi Arabia produces a significant amount of crude oil, gasoline, and propane for use as an export. Saudi Arabia is also part of the OPEC cartel, which adjusts the supply of oil to maintain price. SWOT Analysis of Saudi Arabia: The leading Saudi strength is their large oil supply, while the main weakness is their discriminatory problems. Economic cities have the opportunity to propel growth, while terrorism may lower growth. Saudi Arabia's Currency Trading Strategy: A overvalued currency, low investment flow potential and unfavorable business environment leads to a negative outlook for Saudi investments. For our entire list of country & currency analysis, see the Country & Currency Analysis home page.

Russia Country & Currency Research Report ► (edit / improve) Russia (RUB) is a resource rich, centralized economy with a large land mass and population. Russia's Fundamental Currency Analysis (short term investment): Russia’s currency is moderately overvalued. According to the investment flow analysis, the currency should fall, but the purchase price parity and interest rate parity predict a strengthening of the currency. Russia's Value Investor Survey (short term investment): Russia’s economic environment is very unfavorable. Russia’s economic freedom, government transparency and SWOT analysis scores are very low. Russia's General Trading Partners: China, and Turkey are Russia’s top export partners, while the leading industry is energy. Russia's Commodity Trading Partners: Russia produces a significant amount of natural gas, coal, copper, uranium, palladium, and crude oil. Russia exports many energy products to European Union members. SWOT Analysis of Russia: The leading Russian strength is their oil and gas industry, while the main weakness is political risk. Proximity to energy hungry Europe has the opportunity to propel growth, while falling oil prices may lower growth. Russia's Currency Trading Strategy: An moderately overvalued currency, high investment flow potential, but unfavorable business environment leads to a neutral outlook for Russian investments. For our entire list of country & currency analysis, see the Country & Currency Analysis home page.
Major Crude Oil Consumers ► Press "Edit / Improve"

USA Country & Currency Research Report ► (edit / improve) The United States (US) has a highly productive, capitalist economy and is the largest and most diverse market in the world. USA's Fundamental Currency Analysis (short term investment): the US dollar (USD) has the potential to increase in value especially versus the Australian and Canadian dollar because of the significant potential of undervalued companies. USA's Value Investor Survey (short term investment): the economic environment is very favorable for long term economic growth due to high scores on economic freedom and economic diversity. USA's General Trading Partners: China, Japan, Mexico, and Canada are the top US trading partners, while the leading export and import are electrical machinery and vehicles, respectively. USA's Commodity Trading Partners: The US produces a significant amount of coal and wheat for use at home and as an export. However, the US consumes a larger amount of oil, which contributes to their trade deficit. SWOT Analysis of USA: The leading US strength is its entrepreneurial culture, while the main weakness is high health care cost. Energy independence has the opportunity to propel growth, while the major threat is the housing crisis, which will lower growth. USA's Currency Trading Strategy: An undervalued currency, high investment flow potential and favorable business environment lead to a positive outlook for US investments, which will also benefit from positive international actions. For our entire list of country & currency analysis, see the Country & Currency Analysis home page.

European Union Country & Currency Analysis Research Report ► (edit / improve) The European Union (EUR) is a single market and currency group of countries, which creates one of the largest and most diverse markets in the world. European Union's Fundamental Currency Analysis (short term investment): The EUR is fairly valued versus other major global currencies. They have a positive investment flow and negative purchase price parity. European Union's Value Investor Survey (short term investment): the economic environment is favorable for long term economic growth due to favorable scores on government transparency and SWOT opportunities. European Union's General Trading Partners: Belgium, Hungary, China, Saudi Arabia, Russia, China, Norway and Japan are the top trading partners. European Union's Commodity Trading Partners: The EU does not produce many commodities, but they import many energy-related commodities from Russia and the Middle East. SWOT Analysis of European Union: The leading EU strength is their single currency and internal market, while the main weaknesses include a declining birth rate, labor restrictions and language barriers. New energy proposals have the opportunity to propel growth; there were no major threats to report. European Union's Currency Trading Strategy: A moderately-valued currency, high investment flow potential, but low purchase price potential and negative SWOT weaknesses lead to a slightly negative outlook for EU investments. For our entire list of country & currency analysis, see the Country & Currency Analysis home page.
What is a SWOT Analysis? WikiWealth's free SWOT analysis evaluates the strengths, weaknesses, opportunities, and threats of an investment. A SWOT analysis (misspelled SWOT analisis | SWOT analyse) is essential to understanding investment risk and rewards. SWOT Analyst: Add your improvements to the SWOT Template. See our SWOT example for help.
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The quality and quantify of SWOT statements has a direct impact on stock research ratings, and thus, company investments. A professional SWOT analysis cost a minimum of $150. WikiWealth's SWOT analysis is free and open to improve / edit.
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Common Misspellings
Common misspellings include swot analisis, analyse, analaysis, and analyisis.
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