Whether by skill, or simply by accident, investors of Occidental Petroleum (NYSE:OXY) caught an upward price move in OXY stock. This might feel good, and could lead Occidental’s investors to double down in anticipation of upside momentum.
Yet, it’s not wise to allow euphoric feelings to dominate your investment strategy. Sometimes, a stock can ride higher based on factors that are out of a company’s control — and a positive catalyst can evaporate at any given moment.
This is particularly true when it comes to oil and natural gas producers like Occidental Petroleum. While the company is headquartered in Houston, Texas, events taking place across the world can help or hinder Occidental’s performance.
I’m certainly not suggesting that investors should avoid energy investments completely. Occidental Petroleum is a solid business overall, but investors can’t afford to ignore the ups and downs of commodity prices.
The post Occidental Petroleum Looks Good, but Monitor Oil Prices originally appeared at InvestorPlace.