Oil already up to 48, but the oil stocks donot follow much? Why? Still a lot of people expect the oil to do down and short them? or many oil companies maybe go bankrupt soon? but both donot make sense for me. For me, maybe crazy, the reasonable reason is the house of oil future is not the same house of the oil stocks. So there is disconnection between them. But as far as the oil keeps going up, the oil stocks has to follow sooner or later.
I see quite a few that made decent moves today. Theirs a good chance this pop today won't last. I'm not an oil guy even though I work mostly in the oil and gas sector but last time I saw the Canadian oil sands patch is still kind of shut down. The pipelines are shut down still I think from a forest fire and their putting a million barrels a day between the multiple plants into the market and that's a big chunk of supply not working right now. I don't know if the market or reports take into consideration the holding tanks these places have. I've worked many years on several of these projects and they have multiple large tanks to keep producing in case of a pipeline/shutdown issue and this can all be introduced into the market once things are clear to go. Most aren't shut down from the fire, just the pipelines need inspected for damage.
i have seen oil stocks which have 2x or 3x. has oil done the same. stocks and metals/minerals never have had perfect correlation. it is a non-issue.
At some point.....YES! Traders MORE UNSURE about company balance sheets than the commodity right now and too many fear a glut to go all out for the oil stocks. Another example of disconnect is GOLD to Gold Stocks...trying to re- balance as I write this?
I think so. Today the oil is up again, now it is close 49. I am curious if the house hurry to buy back those oil stocks soon.
The oil companies that produce their own oil aren't going to be to affected by the oil price. I mean, unless the oil companies start selling oil to themselves for some reason.
The oil stocks were going up with oil...recently they've pulled back some while oil has continued higher...if oil keeps breaking out upward, there will be some big UP days for the stocks!
I have the same feeling and waiting for those guys panick. To be honest,oil is 48, but most oil stocks are still the price level of oil 30 of last year