Forget about ever making money in the crude markets again, if the House of Saud, and America’s fracking specialists, continue to drill at present levels.
In a report filed today, OPEC disclosed that Saudi Arabia increased production levels by 263k bpd, which is having a deleterious effect on crude, even though overall OPEC production had dropped.
Pro-tip: No one cares about the other members of OPEC, just Saudi Arabia.
The result has been tumult in the crude markets — with prices swinging sharply to the downside. Stocks like $CLR, highly speculative plays on fracking, are truly receiving the claw hammer of death. The prime ETF for energyfags everywhere, $XLE, is lower by nearly 2%. But more than that, it has been trending lower for the past month — yet no one seems to want to talk about it.
Here are some of the standouts in the oil equipment space, which is down by nearly 4%.
Overall, oil stocks are down in the magnitude of 15% over the past 3 months — most of which has occurred the past 4 weeks.
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