Dividends and Oil price forecast falters as virus variant spreads

Reuters reports business news and often polls experts, in a recent poll Reuters asked 39 economists and analysts what the price of the benchmark Brent crude price would be? The answer is $50.67 a barrel.

Last month the poll was at $49.45 although Brent crude was trading in the range of $51 a barrel.

West Texas Intermediate were expected to average $47.45 a barrel, recently the price traded in the range of $48 a barrel.

Why are the experts predicting a non rising price? Oil is a commodity and supply and demand drives the price. Given the stay at home recommendations by the government and the rise of virus variant and the slow deployment of the vaccine, demand is expected to remain low.

Linking to dividend paying stocks, for generations oil companies have been great dividend payers and long term wealth generators. If your portfolio has a heavy weighing in the oil and gas section, it is time to look for alternatives if you have not done so already.

There are more questions than answers, till the next time – to raising questions.

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