I was hopeful earlier this week that when Saudi Arabia announced they intended to start reining in their above average pumping activity with the sunset of summer, we might see some relative strength in the price of oil.
The market reaction has been to mostly shrug off the new and keep the price of crude oil sliding, so far. The oversupply of oil is a more pressing and immediate weight on the price per volume which is going to have to be alleviated before any pricing strength can take hold.
Despite the continued weakness in oil prices, oil stocks are staging a small relief rally into the weekend, although I cannot say if it will last much longer.
Outside of oil (which for obvious reasons is something of a point of focus for me), my other positions are doing alright. TIS, OMAB, and ALDW are all staging some strength which is taking some of the edge off.
Now, we are in the midst of one of the more beautiful summers we have had of late; turn your screen off and go outside.
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Cain, as much as the oversupply has contributed to the depressed price, I’m off the belief that’s it’s the combination of the supply side and the strength in the dollar. I don’t believe one is stronger than the other, but with muted reaction to the Saudi’s announcement, it makes me believe the strong dollar is here to stay.
Thanks again for ALDW. Mama Mia
such a big dividend.