I think much of the current price plunge was due to politics—not economics—asserts Jim Powell, editor of Global Changes & Opportunities Report.
I think it's no coincidence that the sudden plunge in oil prices is putting a severe squeeze on three of Washington's biggest opponents: Russia, Iran, and Venezuela.
Saudi Arabia desperately needs US protection from Iran and ISIS. I think the Saudis were pressured by Washington to put their financial interests aside in exchange for having their security interests addressed.
Lastly, plunging oil prices caused many exploration and development projects to be cancelled, which will cause a supply shortage at some point down the road. When investors see it coming, they will push energy stocks back up.
My top pick in the energy sector continues to be ExxonMobil (XOM). This conservative investment gained 5,000% since 1970, vs. 2,000% for the S&P 500 and that's without adding the dividends.
Investors who purchased Exxon during one of its many slumps made even have greater profits.
I think Exxon will rebound again and go on to new highs. Nearly every long-term portfolio should include the stock. More would be better.
