Colliding Disruptions—An Energy Market Update

Diamond Hill energy analyst Blake Haxton discusses the recent energy price rout, the collision of supply and demand disruptions, why geology matters in oil production and the impact on long-term investors. The views expressed are those of Diamond Hill as of April 2020 and are subject to change. These opinions are not intended to be a forecast of future events, a guarantee of results, or investment advice. Contango is a situation in which the futures price of a commodity is higher than the spot price. S&P 500® Energy Index measures the performance of those companies included in the S&P 500 that are classified as members of the GICS energy sector. This material is for informational purposes and is prepared by Diamond Hill Capital Management. The opinions expressed are as of the date of publication and are subject to change. These opinions are not intended to be a forecast of future events, a guarantee of future results, or investment advice. Reliance upon this information is at the sole discretion of the listener. Investing involves risk including the possible loss of principal.