Crazy Market
Posted: Mon Apr 16, 2012 3:13 pm
It is very difficult to guess at reasons for the day-to-day moves in the money on Wall Street. I think we are all sure that 1st quarter results for our favorite E&P stocks are going to be very strong. The price of oil is holding up quite well and I sure don't see the geopolitical risk premium going down anytime soon.
Recently I've heard several talking heads on cable news saying that oil prices will be going down. I just don't see that coming. Could they dip below $100/bbl? Of course they can. However, the age of cheap oil is over and OPEC is now in more control than ever. OPEC nations need high revenues to fund their growing social programs and they are consuming more of their own oil. They need higher and higher prices for the oil they export.
Today I saw some very impressive quarter-over-quarter production growth from some of the Bakken companies we are tracking. I expect the same from our Eagle Ford companies.
If forced to give a reason in today's weak market, the dip in E&P share prices over the last couple weeks may be because this is when oil prices started a major pull back last year. That was due to the U.S. debt crisis. April is a normal low demand month for oil. As we move into the summer driving season, oil demand and prices should firm up. BTW actual oil prices have held up quite well this month. Oil closed at over $103/bbl today.
Q1 results are going to be "STUNNING".. Hang tough.
Recently I've heard several talking heads on cable news saying that oil prices will be going down. I just don't see that coming. Could they dip below $100/bbl? Of course they can. However, the age of cheap oil is over and OPEC is now in more control than ever. OPEC nations need high revenues to fund their growing social programs and they are consuming more of their own oil. They need higher and higher prices for the oil they export.
Today I saw some very impressive quarter-over-quarter production growth from some of the Bakken companies we are tracking. I expect the same from our Eagle Ford companies.
If forced to give a reason in today's weak market, the dip in E&P share prices over the last couple weeks may be because this is when oil prices started a major pull back last year. That was due to the U.S. debt crisis. April is a normal low demand month for oil. As we move into the summer driving season, oil demand and prices should firm up. BTW actual oil prices have held up quite well this month. Oil closed at over $103/bbl today.
Q1 results are going to be "STUNNING".. Hang tough.