RE:Meg is certainly volatileshambano1 wrote: Up .50 down .50, makes for a great trading stock, just watch out for trend changes. I think a positive deal is baked into Meg current share price so if we don't get a firm commitment from OPEC and Russia on the weekend oil.prices will head back down again until something else stops the decline, maybe another meeting in June. I also don't think OPEC wants oil to climb to high and bring back the shale drillers, so oil around 40 is just right, not too high and not too low, but not enough for shale and forget about oilsands expanding for another 20 years. Be careful chasing oil stocks. Glta PS and desl for access will help Meg alot
I think under $50 is okay. I don't think any company will start drilling if oil is in the 45 to 50 range. There's no money there at that price and it could just go back down. Most will need to start making some money before increasing capex (not many can/will borrow to drill, as it could well be the last mistake they make). We're in the 9th inning of re-balancing here, so I would be careful about attributing stock prices to single events (although I agree a no freeze deal would cause an immediate pull back). I personally feel the risk of over correction is becoming very real when you consider that every producer now wants to operate within cash flow (with sub $50 oil this is not enough to stop decline).