Oil longs are getting punched in the nuts once again as Crude oil futures fall back below $50. I’ve been patiently waiting for a dip to get aggressive in oil stocks ahead of summer driving & cane season (that’s hurricane season).
I’ve already started a position in $RIG, and will be looking to add some $APA & $WTI in the very near future.
Here’s a current look at the price of oil, breaking down below $50:
If the companies can turn a buck they will pump like hell all the way down to their break even point. They have no option to shut these wells in due to giant debt coming due across the industry.
Which from what I have read is as low as $36/bbl because the production side has become very good at what they do.