Share Prices
Posted: Wed Apr 03, 2019 1:14 pm
Although the price of oil has been strong, and the general stock mkt has been hanging in, energy shares have been weak. Any clue as to why?
There is a general belief that upstream companies need $100 oil to make money. That is totally false as you can see from the profits being reported by our Sweet 16 companies. Net Income at $60 oil today is close to what it was at $100 oil back in 2013.
There is also the regular over-reaction to the weekly storage reports. Crude oil in storage NEEDS to build through mid-April, so refiners have the feedstock they need for peak summer demand for transportation fuels.
Note that oil prices are already off this morning's lows.