• 6 minutes Saudis Threaten Retaliation If Sanctions are Imposed
  • 11 minutes Can the World Survive without Saudi Oil?
  • 15 minutes Saudis Pull Hyperloop Funding As Branson Temporarily Cuts Ties With The Kingdom
  • 3 hours WTI @ $75.75, headed for $64 - 67
  • 7 hours Saudi-Kuwaiti Talks on Shared Oil Stall Over Chevron
  • 1 hour The Dirt on Clean Electric Cars
  • 20 mins Uber IPO Proposals Value Company at $120 Billion
  • 12 hours OPEC's No. 2 Producer Wants to Know How Buyers Use Its Oil
  • 5 hours Closing the circle around Saudi Arabia: Where did Khashoggi disappear?
  • 13 hours Iranian Sanctions - What Are The Facts?
  • 7 hours UN Report Suggests USD $240 Per Gallon Gasoline Tax to Fight Global Warming
  • 1 hour U.N. About Climate Change: World Must Take 'Unprecedented' Steps To Avert Worst Effects
  • 7 hours EU to Splash Billions on Battery Factories
  • 4 hours COLORADO FOCUS: Stocks to Watch Prior to Midterms
  • 14 hours Superhumans
  • 11 hours China Thirsty for Canadian Crude
Martin Tillier

Martin Tillier

More Info

Trending Discussions

These Could Be The Winners Of 2016

Conventional wisdom would have it that 2015 was a disastrous year for oil and other energy industry related stocks. Certainly for those that have a long term “buy and hold” mentality that is true, but for those of us who trade more actively the story is a little different. What traders need is movement, regardless of direction. In fact a market that follows a strong trend but bounces around a bit as it does so is just about perfect from a trading perspective and that certainly describes oil and natural gas futures this year. As a result stocks in the energy sector have tended to follow the same pattern, resulting in a lot of opportunity for profit.

The big picture, though, has been pretty dismal. Most commentators (and I will freely admit that I was in that group) thought at the start of 2015 that the worst of the drop in oil was over, and expected the strong support in the low 40s to hold. That looked like a decent prediction early in the year as futures bounced off of that level and recovered to above $60/Barrel, but then rapidly increasing supply and signs of weakness in global demand caused another push down.

(Click to enlarge)

This sustained weakness in oil, as well as a late year collapse in natural gas, put enormous pressure on many small producers. Most soldiered on though, in the belief that a recovery was imminent and that cash flow from very low and even negative margin production was better than shutting down. That, predictably…

To read the full article

Please sign up and become a premium OilPrice.com member to gain access to read the full article.

RegisterLogin

Trending Discussions





Oilprice - The No. 1 Source for Oil & Energy News