The oil market has become nothing but a rumor mill – rumors of Fed hikes to come, or even Fed cuts – and, over the last few days, a stubborn rumor about a Russian/OPEC summit to cut oil production.
Rumors suck, but this time the fix may be in – I think it’s time to put some money into some oil stocks for the quick blast up.
I’ve got oil stocks, and it’s been painful. I’ve been waiting for the inevitable short-covering rally of overloaded speculators to come since December and wash away a lot of my losses, give me a chance to get closer to even for this, so far, horrible year and have another look at the timing of the crude bust and next boom to come.
I’ve been waiting for a time to add some money into favorite oil stocks to help turbocharge that short covering rally, and now looks like the time to take that last shot: Having seen a low of $26, oil could go lower, but is bounded by zero – and ludicrousness. Fed dovishness tends to lend at least some support to a few less rate hikes than they might have been leaning towards before stocks fell off a cliff.
And then there’s Russia – now twice intimating a willingness to talk about a concerted production cut of 5 percent - first floated through the Iraqi oil minister on Tuesday and today hinted at by the Russian oil minister himself, Alexander Novak. OPEC, and the Saudis have both denied floating a plan, or talking about a meeting.