We seem to be heading back down to where we were when it collapsed a week or so ago. Still not sure why we've gone from near $4.00 to low $3.00's in the blink of an eye. No one else seems to know either.
A projected oil surplus later in the spring along the gulf coast(more than can be refined) may be a good reason. $$ is leaving this popular sector which has had a great run the past 9+ months, back into basic blue blood American cos. for one area. Oil is following the path of natural gas with a multi year lag, regionally from temporary scarcity to temporary surplus. Now industry will benefit from a period of lower priced energy.
Nat gas prices are at year highs and oil still around 98$. If your theory of too much surplus was accurate wouldn't we see energy prices much lower? I believe its just a combination of profit taking, tax loss selling and just this sector being temporarily out of favor . Once we get December behind us these oilers are gonna move back up! Really I have seen nothing change in most of the sm cap oilers except better well costs and more production. Most are cutting costs and ATTEMPTING to clean up their balance sheets. All IMO