OPEC / Russia dealoil storage in USA is falling and unexpectedly why?
imports oil and oil and oil products are still quite high compared to last year.
the pundits are all professing no opec deal in sight and over-supply will last to end of 2017.
so if you beleive this talking heads then short oil stocks like MEG but if you think oppositie like I do, then it's time to buy under-valued oil stocks.
this is a classic wall street move, say one thing while doing the opposite.
everyone is expecting more downward prices in oil sector going into winter but
1-gasoline demand is still quite strong.
2-warm winters from past 2 years resulted in over-supply of heating oil.
3-a normal cold winter will increase demand for heating oil and suck up most of the storage and create big demand for oil to refine.
it's time to buy high quality oil stocks like SU, CVE.
is it time to buy MEG?
it all depends on your view of their debt and how they can get out from under it.
If you beleive they can sell access pipeline for 1.5 billion, that will help greatly.
If you believe they can grow produciton in q4 and 2017 and lower costs and make CF with 50-60 WTI.
if you beleive they is a buyer or JV partner waiting in the wings for MEG and they traise cash.
what do you believe?
GLTA