VBIN's oil stock thread.

[EricL]

OPEC announced they are extending the cuts, and WTI is now over $64.

New 52-week highs for CVX, EOG, and XOM.

[fenders53]

(03-04-2021, 12:24 PM)EricL Wrote: OPEC announced they are extending the cuts, and WTI is now over $64.

New 52-week highs for CVX, EOG, and XOM.

Has Joe has ticked off the Saudis and now we watch the fireworks play out?  Time to buy all energy maybe?  Renewables are about to look more economical which may be actually be part of the master plan?

[vbin]

I sold covered calls against my oxy position.

[vbin]

Reading that oil rally just started, quants and CTAs yet to buy in.

[EricL]

(03-05-2021, 01:48 PM)vbin Wrote: Reading that oil rally just started, quants and CTAs yet to buy in.

I agree. The sector is still hated, and the draws from storage haven't even really kicked in yet.

Just wait till this summer when we have COVID pretty much in the rear-view mirror and demand returns to historical levels.

If OPEC keeps their word on production, the draws will be impressive.

Crude went from $60 to $150 in 18 months back in 2007 and 2008 and from $80 to $115 in eight months from 2010-2011. I don't see any reason why that can't happen again this year as the world recovers from the pandemic and governments print money like there's no tomorrow.

[EricL]

(03-05-2021, 02:22 PM)EricL Wrote:

(03-05-2021, 01:48 PM)vbin Wrote: Reading that oil rally just started, quants and CTAs yet to buy in.

I agree. The sector is still hated, and the draws from storage haven't even really kicked in yet.

Just wait till this summer when we have COVID pretty much in the rear-view mirror and demand returns to historical levels.

If OPEC keeps their word on production, the draws will be impressive.

Crude went from $60 to $150 in 18 months back in 2007 and 2008 and from $80 to $115 in eight months from 2010-2011. I don't see any reason why that can't happen again this year as the world recovers from the pandemic and governments print money like there's no tomorrow.

I will just add that if/when crude breaks $100 it will be time to start being careful on the overall market. $150 will pop the credit bubble again, just like in 2008. There's too much leverage in the system, it can't handle the higher costs associated with those types of energy prices.

[vbin]

That's a good point. Everyone I know already talking about travelling.

Curious why some of the MLPs haven't participated as much in this run much. PSXP, ET, EPD etc all still way low comparatively.

[EricL]

(03-05-2021, 05:58 PM)vbin Wrote: That's a good point. Everyone I know already talking about travelling.

Curious why some of the MLPs haven't participated as much in this run much. PSXP, ET, EPD etc all still way low comparatively.

I'd guess because their earnings aren't as levered to the price of oil as the E&Ps are. They generally operate more on fixed contracts based on volumes so they don't see as much upside from higher oil prices.

[vbin]

(03-05-2021, 06:36 PM)EricL Wrote:

(03-05-2021, 05:58 PM)vbin Wrote: That's a good point. Everyone I know already talking about travelling.

Curious why some of the MLPs haven't participated as much in this run much. PSXP, ET, EPD etc all still way low comparatively.

I'd guess because their earnings aren't as levered to the price of oil as the E&Ps are. They generally operate more on fixed contracts based on volumes so they don't see as much upside from higher oil prices.

Could be not sure. I think MLPs have fixed payable contracts they don't solely rely on volume. May be fixed pay + volume. If later is the case street was pricing in that those contracts will be in question given corona. But now they should be able to renew. Need to research.

[fenders53]

Look at you guys in here talking about $100 oil. Dont worry, I mocked TSLA before it did a 10X lol.

[vbin]

(03-05-2021, 10:15 PM)fenders53 Wrote: Look at you guys in here talking about $100 oil. Dont worry, I mocked TSLA before it did a 10X lol.

Yeah, may be $200, lol. Brent crossed $71

[fenders53]

(03-07-2021, 10:56 PM)vbin Wrote:

(03-05-2021, 10:15 PM)fenders53 Wrote: Look at you guys in here talking about $100 oil.    Dont worry, I mocked TSLA before it did a 10X lol.

Yeah, may be $200, lol. Brent crossed $71

You guys just keep running it up until you crash all our DGI ports lol.