Maybe it’s too early to tell, but crude found support around $46.00 this week, and today, it is getting a boost from positive government news on inventories. Still, the XLE is down 10% this year, and many names in the sector have fared worse. I still see an oil rally that eclipse $55.00 on the upside this year.
So the market, while still meandering, lifted off earlier low points in part to the latest report on petroleum inventories from the US Energy Information Administration. A sharp decline in crude inventory levels, reflecting a sharp decrease in imports, helped crude inventory decrease by 5,200,000 barrels.
Of course, the nation is still awash in crude to the tune of 522,500,000 barrels, and domestic production has surged.
Still, I like a number of crude oil ideas including:
Overall, I feel good about this market, which has had several opportunities for profitable positions to be cashed out; it hasn’t happened, and that’s a buy signal, or at the very least, a hold signal.
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