• 5 minutes Global Economy-Bad Days Are coming
  • 8 minutes IT IS FINISHED. OPEC Victorious
  • 14 minutes Venezuela continues to sink in misery
  • 17 minutes Could Tesla Buy GM?
  • 3 hours OPEC Cuts Deep to Save Cartel
  • 3 hours Paris Is Burning Over Climate Change Taxes -- Is America Next?
  • 4 hours What will the future hold for nations dependent on high oil prices.
  • 4 hours Price Decline in Chinese Solar Panels
  • 5 hours And the War on LNG is Now On
  • 9 hours Alberta Cuts Push Prices Too High
  • 5 mins How High Can Oil Prices Rise? (Part 2 of my previous thread)
  • 1 day Congrats: 4 journalists and a newspaper are Time’s Person of the Year
  • 1 hour USGS Announces Largest Continuous Oil Assessment in Texas and New Mexico
  • 1 min Rage Without Proof: Maduro Accuses U.S. Official Of Plotting Venezuela Invasion
  • 2 days Permian Suicide
  • 5 hours Rigs Down

Breaking News:

Total To Boost Exploration In Mauritania

Dan Dicker

Dan Dicker

Dan Dicker is a 25 year veteran of the New York Mercantile Exchange where he traded crude oil, natural gas, unleaded gasoline and heating oil…

More Info

Is The Disconnect Between Oil And Oil Stocks Dissolving?

Offshore Oil Rig

I’ve commented for weeks upon the disconnect that continues between the price of oil and the prices of oil stocks. In the past, you could set your clock based upon the correlation between oil and oil stocks, and my successful trading career has in no small measure depended upon this correlation.

But my very correct call on oil prices, now above $70 a barrel in Brent, has not so far been rewarded with concurrent gains on our oil stocks.

Is it possible we are seeing some light at the end of the tunnel? On Wednesday, that disconnect took a few small steps towards dissolving. It has been a long time since I can recall a day when the larger stock indexes were down and yet the energy sector posted positive gains. Yet this happened on Wednesday.

But – let’s not get too hopeful yet. We have also cautioned about volatility and the difficulties it delivers. We’ve noted the continued prospect of a trade war with China, saber-rattling in North Korea and Iran and in the last days we’ve seen more geopolitical risk with a possible retaliatory missile strike in Syria and more Houthi missiles launched from Yemen flying over Saudi Arabia.

Despite the positive action recently in oil stocks, we still note that volatility is not normally a positive sign that we should blithely accept. It will require a bit more work to manage through this wild moment in the stock market, and I am looking at this mini-recovery in oil and oil stocks as an opportunity…

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