That makes absolutely no sense. EPD and some of the MLPs are steals here and will go up as long as there is demand in the US for oil and gas. Period.
I think I read somewhere that the larger the difference, the more money refiners make. The margin was almost zero a few weeks ago. Now it's over 10% again. TSO will fly soon.
Why is KMI getting so much attention? It's is a massively mismanaged company, run by Kinder who totally screwed up by purchasing assets at the high of the oil market with huge ramp up in debt and then lied about the divvy cut.
Sell off due mostly to ETFs having to sell indiscriminately to cover redemptions. Fundamentals are out the window.
If you read the recent articles on oil productions there is a subtle but important change in the tone of the Saudi communication. They are now saying the price of oil is too low! I wonder if that's a hint for their commodity trader to cover their short positions or even that they are getting desperate!?
Perhaps shorts are not killing this one but they are all over many of the MLPs. Note that Jan/Feb is short killing season as they have to cough up the large distributions due to longs.
No. If customers go BK and their products are in demand, another company picks up the slack. Your theory only holds water if no one needs oil or gas!
This is a gift here. KMI had a huge loss but the bad news is out so buyers are coming in. Once EPD reports - Jan 28, it will be way up.
Hang in there. For now, the algos are in control. There is no logic or fundamentals. The only certainty is the market will eventually bounce back - usually with breathtaking speed thanks to same algos covering short positions.
News flash! Despite the actions of the stock market to the contrary, CNN is reporting that the sky is still above our heads!
More perspective - We are at 14 year lows! At the height of the 2009 selloff capitulation, DVN dropped to a low of $44! That is 120% up from here.
Another tidbit: DVN market cap is only 2.6% of Exxon's. XOM could gobble this up at 100% premium with one month's worth of cash flows!
Anyone who sells here is foolish when looking at history and real economic facts.
If anyone told you 2 months ago DVN is a good buy long-term, you would likely agree. Knowing that at the time it was down 32% in 6 months. Now imagine they told you DVN would drop another 60% in 2 months! You would laugh at them. Well it did! The only way this makes sense is if oil as a commodity is going to be replaced by alternative energy.