RE:this m.f**ker selling energy for no reasonit's just trading and you have to recognize it for what it is.
more risk in the fall and many traders are watching the demand side of the oil price equation, be it slowing in china, or even USA if and when they raise rates, it all means something.
so oil price can be trading for other reasons that the ones you think it's trading on.
right now perception is russiam and OPEC are over producing and trying to talk up prices or at least prevent them from fall back under 40 and they appear to be doing a good job.
USA produciton is flat lining at current levels with new drilling happenning in the permian and limited in grow in other plays.
so it all depends on first what major oil producers will do, and how convincingly they do it, second, at what price will oil trade at one majors decide one way or another and then it will depend on what USA shale will do at those price ranges and then what happens if demand falls off.
risk risk risk and that's why oil price but more importantly oil equities like MEG, CVE, and many others are trading down at this time of year.
it's not always one 1 to 1 correlation with oil prices.
but q3 might change sentiment for CVE and SU and MEG if they can prove they can increase produciton at low costs and make CF at current price range.
MEG will perform better after q3 once things settle down but like I said a few weeks ago, keep you powder dry and wait for a great entry point if you are still a MEG fan, other wise stick with the lower risk companies like SU or CVE who have billions in the bank and can weather conintued low oil prices.
but remember the Saudies are experiencing a lot of pain right now and even they ahve to be careful with dissent in the populaiton if wages and costs keeps rising due to low oil prices.
I read something the saudies need 60 plus oil to balance their budget but Iran needs much lower prcies somewhere in the 40's and this cat and mouse game will continue for a few more months, until everyone is happy with a supply freze or even a supply cut.
agaion keep your powder dry and wait for a great entry point.
dyodd