Should you invest in crude oil?

Adding exposure to crude oil, or energy stocks more broadly, could help balance your portfolio when oil prices are rising and stock prices are falling—or vice versa. Because the oil industry was “shunned” by average investors for the better part of a decade, they missed out during periods of rising oil prices, McNally says.

How much oil does California import from Russia?

California imported 6% of its crude oil from Russia in 2021, which translates to more than imported another 49% from Ecuador, Saudi Arabia and Iraq last year as well. California’s reliance on foreign oil has only grown because of the state policies that severely limit the production of affordable energy here at home.

Why is California a good place to get oil?

Because of its demanding standards, California has the ability and know-how to extract petroleum more responsibly and safely than any other oil-producing region in the world. The question is: Where do we want the oil and natural gas that powers our state to come from? Foreign suppliers that leave us vulnerable to price hikes?

How do investors get exposure to the crude oil market?

Investors get exposure to the crude oil market, when prices rise, but are paid in the interim. During periods when oil prices are surging, many investors may be tempted to branch out to a new type of asset to try and harvest some of those gains.