Why so many investors lose money in the energy trade

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Crude oil is one piece of the market that is constantly fluctuating, and it was not different in 2025. In January, oil prices reached their climax for only five months to decline after only months.

On Friday, oil prices fell to their lowest levels, amid fears of a complete trade war. West Texas (CL = F) has decreased more than 7 %, while futures decades (BZ = F) decreased more than 6 %. The last time the crude was circulated at these levels in 2021.

In the speech of Yahoo Vibers, veteran Wall Street trader Kenny Bolkari presented a clear trend for investors: “Stop chasing oil prices.”

“Every time the oil moves, investors are scrambled to respond,” Bolkari said in the March 12 episode of Trader Talk (see the video above or listen below). “Prices rise, everyone rushes to energy shares, persuaded oil to $ 150 a barrel and prices. Suddenly, everything related to demand, destruction and recession fears. This constant interest response is exactly the reason why many people lose money in the energy trade.”

Polkari stated that “oil is volatile in nature,” but “does not go anywhere”, as most of the market sectors that grow constantly depend on oil.

“The bet on the short -term moves is a losing game,” he said. “Instead, smart funds follow the larger direction. Although pressure on renewable energy sources, the world is still working on fossil fuels. Artificial intelligence data centers, global manufacturing, and infrastructure projects all require huge amounts of energy. The idea that the demand is not really supported by reality.”

Bolkari also pointed out that the United States produces short levels of oil, giving the country more control of the market supply and “maintaining a price cover.”

These feelings echoed Le Passiniz, Executive Vice president of the Market Strategy at Al Barari Operating Company, an independent oil and gas company. “It is better to betray now in the long term of oil.”

Although renewable energy sources were growing from the power mix in the United States, the Pasini has prompted the idea that the United States can fully move to 100 % renewable energy sources such as solar energy, wind and hydroelectric energy. “There is no real energy transition,” he said. “It may be balanced.”

Basini said the United States is still a major player in the oil market, as it produces 13 million barrels per day. However, this will not prevent merchants from having to move in a volatile market.

As Eins Ferry from Yahoo Finns stated, President Trump’s program has targeted and took revenge in China this week. The losses extended on Friday as investors charged economic growth interests and organizing oil exporting countries and their allies, or OPEC+, they plan to increase the offer.

But according to Bulkari, oil will continue to serve as the backbone of the economy, even through geopolitical tensions – and investors can still make a profit from these fluctuations if they know where to search.

“Stop circulating oil as if it was a lottery ticket,” Polkari said. “Instead of chasing price fluctuations, focus on the companies that were created to flourish in any refineries-refineries market, pipeline operators, and power companies with various revenue flows. These are the names that create a long-term value, not just short-term nails. The basic line is the oil revolves around understanding structural forces in play. Building a thesis, then implementation.”

Every week on Trader Talk, veteran Kenny Bolkari in Wall Street offers you experts and main market visions of the New York Stock Exchange. You can find more episodes on Video center Or witness to Favorite broadcast service.