Sweet 16 Update - Dec 8

dan_s · Post by **dan_s** » Fri Dec 07, 2018 5:02 pm

The Sweet 16 moved down 2.11% during the week ending December 7th. Overall market weakness is the primary reason.
> OPEC + Russia announced an agreement to cut production, which should stabilize oil prices.
> We have entered a period of increasing demand for heating oil and diesel.
> U.S. refinery utilization over 95% should draw down crude oil inventories, which are not too high anyway.

Only four of the Sweet 16 were up: CLR, EOG, GPOR and PDCE.

Q4 results will be OK with WTI averaging well over $50/bbl and natural gas over $4.00/MMBtu for the quarter.

We are in one of those "Chicken Lickin, the sky is falling" periods, but the fundamentals are OK for upstream companies. Eventually, Trump will work something out with China and the FEAR of a global economic meltdown will be reduced. BTW the consumers are loving these low gasoline prices, so the Christmas season should be very good for the retailers.