Many stocks go hand-in-hand. They are grouped in sectors. So if a sector goes up, we can buy the good ones and out-perform the sector as a whole.
The chart (click to view) shows a comparison of Oil price and a set of 4 good oil miners : Earthstone Energy Inc., Northern Oil and Gas, Rangers Oil Corporation, Ring Energy Inc. for the past 24 months up to Close of March 10, 2023. It can be seen that collectively they behave just like the Oil.
The oil prices have dropped a lot in the past few weeks, especially during the turmoil caused by the sudden bankrupt of Silicon Valley Bank, all the oil stocks fell much more than the oil.
Then OPEC suddenly cut oil production to help the oil price, and it rose strongly, the oil stocks rose together, as seen by the chart.
One approach to invest is when the oil has fallen a lot, then the above stocks would have fallen much more. One buys the stocks when oil is low, and sell the stocks when oil is high.
The question becomes when we know the oil is low ? May be one can use technical chart like RSI to gauge ?