Crude & Heating Oil were up on overnight trading. If we get a follow-through when NYMEX opens, energy stocks could get a little boost today. I don't expect crude/heat prices to stay up long term but could be a good short term or even intraday rally on energy stocks.

 

It appears that crude prices are still dropping. I would probably stay away from it for now.

But yes, long term would be good investment as we all know crude oil fluctuates like crazy.

 

I've read oil is a buy at 52. I don't understand commodity related stocks.

 

Unexpectedly high inventories were reported yesterday for last week, pushing crude and energy stocks lower. Crude has broken below support levels and predictions vary on where the next "buy" is for the hedge funds. I'm out of energy stocks until that happens and the price of crude starts moving up again. Unless you're willing to hold and not agonize over the daily volatility, I'd leave it alone until crude shows a good move to the upside.

 

Boy, the key to this post turned out to be the intraday comment. Ouch since then!

 

I bought Penn West Energy Trust recently (PWE), a Canadian oil/nat.gas trust. It's been beaten down recently due to tax law changes in Canada and weak oil and gas prices due to the mild winter, but it pays a nice dividend and should do OK when energy prices go back up.

Anyone bearish on energy?

 

I'm still bearish energy until I see a confident move to the upside on crude.

Seems to be a variety of conflicting opinions on the market. Crude was at its lowest since (I think) June 1, 2005 yesterday but got a little bounce overnight. Many of the top chartists are calling yesterday's intraday "rally" a dead cat bounce and calling for crude to fall into $49.75 - $50 range. Others feel today will bring a short-covering rally prior to the holiday weekend. But a short-covering rally won't necessary hold when the market reopens Tuesday. Obviously, it's anyone's guess. Quoting from an interesting article by Tom Kloza yesterday:

[QUOTE]Even the most bullish of trading houses - - and there are many that still believe 2007 prices will be above average 2006 levels - - have to admit that their collective psyche has been damaged severely this week.

Crude oil closed below key support levels today and while there was a small bounce in after hours' Globex action, it will be difficult to muster a rally in the next few sessions. The February WTI close of $51.88 bbl, down $2.14 bbl on the day, represents the lowest number since June 1, 2005.

 

Looks like energy stocks got a bounce today. A trend?

 

Short covering before the holiday Monday, coupled with OPEC rhetoric about more production cuts. Most in the industry don't believe OPEC will actually follow through with the cuts and in fact looking at tanker reports that have just come out indicates that OPEC production is actually up 100,000 b/d despite all the emergency meetings and rhetoric about production cuts.

Personally, I'd wait for a follow-through to the upside before getting too jacked about short-term energy.

 

Since the price of crude oil weighs heavily on the price/value of energy stocks, I thought the following might be of interest in explaining how little historical supply/demand fundamentals have to do with the price of a barrel of oil these days. The price is crude is driven by the financial houses and hedge funds in a way that didn