Commodity Trade Mantra

Posts Tagged ‘Oil Stocks’

How Oversupplied is the Oil Market Really?

My conclusion is that this market is only marginally oversupplied and represents approximately 1.5% of the global oil market. If the above assumptions prove accurate then we could very well see an oil market that is in equilibrium if not undersupplied by the end of 2016. My guess is the price of oil begins to move higher long before that moment actually occurs.

Plunge In Oil Prices Prove You Shouldn't Try "Catching a Falling Knife"

Oil crashed in the second half of last year, falling from over US$100 to below US$45 in Jan 2015. Many thought it was a great buy & piled in to oil stocks. Oil turned up & then back down to make a new low in March. Again bargain hunters came in & oil began a hefty rally, trading back to US$60. Oil prices have now crashed to new lows. What do the bargain hunters think now? Still a bargain?

Don't Expect An Oil Price Rebound This Side Of 2017

With the oil price collapse having started roughly a year ago, that means that it may take about two more years for unconventional output to actually start declining. Given that, investors need to focus on oil stocks that can get through the next two years on minimal (if any) profit, and they themselves need to be prepared to wait for a price rebound until 2017.

Not ‘Rushing in’ to Buy Oil Juniors for 5 or 6 Months : Rick Rule

A lower oil price might stimulate demand in the near term, as people have more money, thanks to lower gasoline & energy costs. This begins to seed the overall economy for a recovery – a real recovery unlike the manufactured ones, based on cheap credit in developed nations. In the near term, though, price decline may weigh on the economy.

The Oil Pricing Mystery Has Been Solved

Plan for oil prices to stay lower for longer than you think. As with most busts, there has to be a washout phase filled with bankruptcies & lots of angst. We’re not there yet. Oil stocks are way down – But I expect we’ll see a significant oil company or two go under. The bust will take some time to play out — not weeks or months, but probably years.

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