Everything's on sale! But they will get cheaper yet.
I'm really regretting not getting those PXD options on friday, which would are up about 500% + (hard to tell because they're thinly traded. But I'm glad I have a position in American Airlines (up 8% right now). I'm looking to unload EOG, because I think it has much lower to go. Its too painful to try to sell WLL today. Some of the companies, even large caps E&Ps, are down 20% right now.
Oil can go MUCH lower than this. Why shouldn't it go to $50? If OPEC is not balancing the market, the market will have to balance the market. We should see some major capex cuts, but what can stabilize the market in the short term?
The fact that the S&P is up right now seems strange to me. There could be huge consequences to what happened yesterday. Countries like Venezuela or Iran or even Russia could be in serious trouble. Default rates on sub-investment grade corporate debt could start to spike, because energy is a big chunk of this market. US Petrochemical industry (DOW, LYB, WLK) could be hurt because they rely on an advantage of US natural gas liquids vs global oil prices. Within the transport sector we're seeing rails get hammered today because they transport so much crude by rail today. It's going to be an interesting couple of months.
I'm really regretting not getting those PXD options on friday, which would are up about 500% + (hard to tell because they're thinly traded. But I'm glad I have a position in American Airlines (up 8% right now). I'm looking to unload EOG, because I think it has much lower to go. Its too painful to try to sell WLL today. Some of the companies, even large caps E&Ps, are down 20% right now.
Oil can go MUCH lower than this. Why shouldn't it go to $50? If OPEC is not balancing the market, the market will have to balance the market. We should see some major capex cuts, but what can stabilize the market in the short term?
The fact that the S&P is up right now seems strange to me. There could be huge consequences to what happened yesterday. Countries like Venezuela or Iran or even Russia could be in serious trouble. Default rates on sub-investment grade corporate debt could start to spike, because energy is a big chunk of this market. US Petrochemical industry (DOW, LYB, WLK) could be hurt because they rely on an advantage of US natural gas liquids vs global oil prices. Within the transport sector we're seeing rails get hammered today because they transport so much crude by rail today. It's going to be an interesting couple of months.
No comments:
Post a Comment