At Rose & Associates, we love all things oil and gas. If you have ever read an article about the oil and gas industry, or if you have ever listened to a news report about oil prices and stocks, you’ve probably heard the terms “bull market” and “bear market.” However, if you are not very familiar with the industry, you might be a little confused as to what these phrases mean. In this blog post, we will discuss what each term means, and how these phrases came to be a description for the market.
What is a bear/bull market?
A bull market occurs when things are going well. Oil prices, employment, and the economy are all up. Bullish investors are optimistic that good things are in store for the market. A bear market, on the other hand, occurs when the economy is bad or in recession, or perhaps when oil prices are low. Bearish investors have a pessimistic outlook on the market.
Why is the market referred to as “bearish” or “bullish”?
Investopedia says, “The bear and bull markets are named after the way in which each animal attacks its victims.” While a bull will drive its horns into the air, a bear will “swipe its paws downward upon its unfortunate prey.” Additionally, in ancient Rome and Elizabethan-era London, bears and bulls were put into arenas for fighting matches.
In the oil industry, there are constant ebbs and flows. If your oil production company is struggling to make E&D decisions, talk to us today. We can offer assistance through our oil and gas training courses, our practical consultation, and our analysis software options.