The Market - Dec 28

[dan_s]

Why are so many upstream companies selling off today when oil & gas prices are up?

Today is the last trading day where the sales will close in 2016. Hedge fund manager want to lock in profits because that is how they get paid the Big Bucks and a lot of them take off the rest of the week. Over the years, I have found this to be a great day to buy.

If the oil and gas storage reports are as bullish as I think they will be, then oil and natural gas prices should move higher. I saw one forecast today that said the draw from natural gas storage would be ~240 Bcf for the week ending December 23. That would push U.S. natural gas storage below the 5-year average and make December, 2016 the largest reduction in gas storage EVER for the month of December.

Gas storage level s/b around 3,100 Bcf on 12/31/2016. This compares to ~3,700 Bcf a year ago.