After a sharp decline in crude prices and the stock market in general, the first quarter saw prices bounce back to finish about halfway between their Q4 peak and trough. Concerns about economic slowdowns increased in the fourth quarter, though these have subsided somewhat. The Federal Reserve indicated in March that it would not raise rates for the rest of 2019, further easing concerns. OPEC production declines helped ease supply and raise prices, though U.S. production has continued to grow. Despite this domestic growth, investors have shown a preference for returns and capital discipline, not just surging growth.
January 1, 2019