Why Shell and the Other Oil Majors Aren't Price Gouging
When the price of gasoline rises, it boosts profits for companies like Shell, Exxon, and Chevron.
Overview
The energy sector is inherently volatile, with oil prices often fluctuating rapidly and dramatically. Wall Street seems to forget this fact every time the energy sector goes through yet another big price swing. Right now, volatility is high, and so are oil prices, thanks to the geopolitical conflict in the Middle East. It is headline-grabbing news, but it really isn't all that unusual for the energy sector.
However, there's an important political dynamic here that investors need to consider. It is highlighted by U.S. President Donald Trump's recent accusation that oil companies are price gouging, which included a call for a Department of Justice review. Here's what you need to know as you look at companies like Shell (NYSE:SHEL), ExxonMobil (NYSE:XOM), and Chevron (NYSE:CVX) today.
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Originally published at www.fool.com.