40 WTI is huge..................
Chesapeake Energy Corp. is weighing a sale of some of its holdings in an oil-soaked patch of shale in Oklahoma known as the Stack, as the natural gas giant unloads assets to pay down debt, according to people familiar with the matter.
That is a key number..Most producers make money at this price..If it holds expect the Saudi numbers to be realized and that's 50.00 Brent. The nice part about those numbers are 37.50 should be a new bottom for WTI..
Wall street bites.............
Then it looks like a push to 50.00 ..
Solid and confident...Love it.......
and all those shares that sent the price up was more than likely not short interest...Hedge funds started this run and they want to at least dbl.. What I noticed about short squeezes is they all have in common 3 legs up and very fast ones with the last leg to be parabolic..we just stepped in leg 2 yesterday.. My target for leg 2 is 7.00. Then another pause. This could easily make 11.00 on leg 3 and could go very much higher. Short squeezes have no rhyme or reason to them.
I see many other sectors fail and those who bet long will jump on the weakest sector for the year that looks like it will recover..The Nat gas market just started the Apple run. The generation of electricity by nat gas will dbl in 2 years and 10 fold by 2030. Exports should quadruple in 2 yrs, Under the radar wet gas has been exporting from philly for a month now. 3 fracking plants right next to CHK's acreage are not proposed but being built.CHK went through a spender CEO and he bought the best and built what I consider an empire under siege by too much..Now we have a cost cutter who saved the best for last . CHK if it all works out should be a major in 3 years.. I find it hard to predict a price now but I know it's above 25.00 in 2 years ..
Did you watch 60 minutes on the topic last night... Someone with big bucks in the Saudi govt. was backing the terrorist.. The only reason for the US not to push it is we need the OIL even if we have a glut we still import Time to make em pay..
.U.S. Natural Gas Production Dipped by 1 Bcf/d in March
Oil also has to bust 35 and hold.......
ummm oil looks to hold 35 and none will hold short the weekend..Add up those expecting to get margin calls and you are not in a good position..
When you see it dip suddenly.That would more than likely be Companies grabbing hedges.I suspect they will wait it out above 40.00.
All signs suggest that a meeting of OPEC and non-OPEC oil producing countries in Doha on April 17 will produce an initial agreement to freeze output, Kuwait's OPEC governor Nawal Al-Fuzaia said on Tuesday. Fuzaia, giving a speech at the oil ministry, also said she expected the oil market to achieve a balance between supply and demand in the second half of this year. The Brent crude oil price, now at $37.42 a barrel, is expected to average between $45 and $60 in the second half of this year and until 2018, she added. Fuzaia did not elaborate on what signs pointed to an agreement in Doha, but said producers might agree to freeze their output at February levels, or at an average of January and February levels. The original proposal by Saudi Arabia, Qatar, Russia and Venezuela was for a freeze at January levels. On Iran's plans to raise oil output, which Tehran has said it will not abandon, Fuzaia said rising Iranian production was not in itself a problem, but there was a problem with Iran's ability to sell this additional quantity into a saturated market amid weak demand. -