Hurricane Harvey was the optimal entry point for the beaten down oil sector. Over the past month, returns range in the ballpark of 20-40%, thanks to a surge in crude — pushing it to 8 month highs. The median return for the oil drillers, 1 month out, is +18%.
Although crude is at 8 month highs, it really has gone nowhere in the big scheme of things. Crude stocks were down ~40% YTD, before this run. After Harvey hit, WTI dropped because refineries went offline — creating a rich spread between Brent and WTI. Now that supply is back online, WTI has jumped — but the Brent spread remains. This, to me, is a mystery.
While the temptation to go long drillers is palpable, it makes more sense to buy the refiners, since they profit from the WTI-Brent and heightened crackspreads — thanks to supply disruptions.
My gut instinct has been wrong with crude, but seasonality suggests now is the very worst time to be long oil.
If you enjoy the content at iBankCoin, please follow us on Twitter
fly you need to find new talent. someone young who looks for 10 baggers
ibc feels like a site all the old timers come to relive the glory days – no more actionable ideas
does OA even trade anymore? tech stocks down 5% and not a peep
hold a contest at reddit /wallstreetbets with cash reward and bring over the craziest fucker who can write. or you know we can all buy t bills and jerk eachother off
Now is not the day to buy. Quit being a needy bitch.
Last I checked this was a free site, with a paid option. Nobody contributing content owes you jack shit. Find your own picks. You people make me fucking sick
Correct. The negativity is lame. Quit hating on people and contribute. Guess what, you people who are bitching are capable of being that guy. I believe in you. Post your ideas.
OA is to busy running summer camp and drumming up business via clickfunnels to raise capital to cover his trade losses
Quick talking shit.