Oil stocks are volatile because of how the sector is set up. Think about it. Where do most of our oil come from? Foreign countries. Therefore, things like flare-ups can happen. As a result, oil stocks can pay the price. Weather is another factor that affects oil and gas. The US also produces a lot of its oil, and depending on environmental policies, that amount grows or shrinks. Think about all the American companies affected by the price of oil or the lack of economic activity and how that can hurt the industry.

It’s a lot to focus on when trading oil futures or oil penny stocks. We cover oil futures closely. If you hang out with us in our trade rooms, we cover oil futures closely. We watch the reports and pay attention to sentiment and economic events that will impact the price of oil and will create volatility in our trading day.

Your trading style will also depend on how you invest or trade this oil stocks list. How much risk do you want to expose yourself to? Do you want to trade oil ETFs rather than pick a stock? Do you want to trade oil stocks, futures, or options? These are questions you must ask yourself before you get involved in trading oil stocks.