What is the relationship between gas/oil prices and stock prices?

Question

What is the relationship between gas/oil prices and stock prices?

Answer 1

For Oil/Gas company stocks the relationship is simply as one goes up so does the other.

For every other company, it is inverse.  As gas and oil prices rise, the stocks go down as consumer spending must decrease in other areas to compensate for the void in consumer budgets.  The Dow lost over 2000 points due to the rapid rise of Oil and gas.  As Oil had declined the dow has started to recover.

Answer 2

Oil is pegged to the American dollar.  So there is an inverse relationship; i.e. as one goes up the other goes down.  Other contributing factors include the cost of getting oil and processing oil into gasoline, building refineries, union actions, and other mundane logistical costs.

Now, as the value of oil and dollar fluctuate, there will be panic, greed, and fear in the stock market as investors buy and sell stock proportionately (proportionate to their fear & greed).

So the relationship between gas/oil prices and stock prices is the human relationship.

Answer 3

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Answer 4

Energy stocks have been moving in sympathy with oil/gas prices, and financial stocks and airline stocks have move particularly inversely to oil/gas price moves.

Answer 5

There is no "one" relationship.  Certain stocks will benefit while others will be hurt.

Answer 6

Gasoline is just one part of the equation that a barrel of oil can be refined to.

There really is no direct relationship between the price of oil, the price of gas, and stock prices. Many factors move each of them.

One can argue that the price of oil will impact the price of gas, but one could not quantify (peg) a specific dollar and cents amount to oil and gas or to any stock.