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Explain the story that oil prices of $110+/barrel are telling. What happens to the story if oil prices suddenly fall to $65/barrel? What new story,
Explain the story that oil prices of $110+/barrel are telling. What happens to the story if oil prices suddenly fall to $65/barrel? What new story, if any, is likely being told? How would you analyze embedded oil price expectations for Company X for 2022 and 2023? After establishing the embedded price of oil for 2022 and 2023 in X, what is the next step to address when making a buy or sell decision (what have we discussed endlessly in class)?
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