RE:RE:RE:RE:Anyone buying this rally?
"...I'm feeling a bit of whip-lash here. For two long years, the mantra for NG companies was "the more NGL, the better." Then, blam, starting about a month ago, the new mantra is "the less NGL, the better.".
I had a feeling somehow that oil prices would get crushed someday - with all that US production - although not from the consequences of a virus. I'd rather have my whip-lash from a first day on a beach in Southern France.
US will surpass Italy and maybe China today, and become the country with the most cases.
The city of New York is in a mess. Finding a treatment shortly seems the only solution to avoid a worse case scenario.
I believe WTI could trade as low as $15usd/bll, simply by the fact the world economy will consume 30% less oil for at least a month if not two. Isn't it why the US gorvernement is already prepared to buy millions of barrels?
I do not think NatGas consumption will suffer as much.
Watching the Bakers Hughes rig count evolving in the next couple of weeks will be interesting.
I do also believe this rally from relief money is about to fizzle. If a next leg to the downside takes over last week lows, I would not be surprised to see S&P500 trading 1800's. On the other hand, I cannot trade based on these catastrophic scenarios. Peyto is one of the stock I nibbled. We might see gas stocks remain low for a while but I doubt the whole industry will go bankrupt.