RE:Why is Oil DownBiden is considering restricting product exports to lower domestic prices. AP
Ask yourself, how would that affect Canadian oil? Not much.
Interesting last few days, being down 4M$ in just a few days. Hail the power of margin that cuts both ways. That puts me back to where I was just 4 weeks ago. Bummer, I guess.
I sold off 2M$ of HEU at BE to keep margin in check and not create more tax gains, and bought a bunch of MEG calls for Aug, as well as a bunch more HWX. This is such a crazy meltdown in oil stocks, when everything is being sold. Any day oil is above $60 is a good day, cause that is how many these companies are being valued at, even just a week ago. At current crack spreads and WTI prices, most will be debt free in '23/'24, and return 75% to 100% of cash to shareholders. I don't want to miss out when that happens. I guess WTI can drop another $50 so we can finally get our share prices to fair market values. I think this week is a gift, and I'm not going to let it slip by.
Nothing has changed in Canada to warrant such a drop, other than witnessing the raw power of fear of misinformed people following others in large groups. Periodically, I must remind myself how badly out of touch the general population is towards oil stocks when I read the comments of people complaining about oil prices on CTV news on facebook, and also in the comment section of CBC articles online. Pay heed, as they are many, and they buy and sell in large groups. It is these people who also put these idiots in power that caused this energy crisis. No wonder oil has had such a powerful run, and will continue to stay strong the longer they stay in power to continue to mess things up.
This week we had a lot of negative things. The Fed interest rate hike, Biden blaming oil companies for high prices, recession fears, bear markets in indexes, USD spike, a US trading holiday monday, and the week culminating in triple witching option expiry today so anything goes. Did I miss anything?
Note, SU share volume percentage increase on the US side is much larger than in Canada. As with others, this is a US led selloff.
As Experienced has pointed out and warned, and I have agreed, times are going to be getting tougher. We will soon see how well energy companies hold their value as energy runs out while the economy tanks. My money is on an eventful summer of shortages, blackouts, high prices, scarcity, fires, hurricanes, and more mismanagement leading up to November US elections when some politician with a long dipstick measures what is left at the bottom of the SPR salt cavern of oil that was sent to China.
Chad123 wrote: Good Question. There are all lot of speculation going on right now and there could be many reasons for the big drop but I'm guessing that there might be some speculation to the end of the occupation going on right now. Seeing some tweets about it.....