That just means it was oversold. Only daytraders are concerned with the ups and downs. Even then, they sometimes get caught with their shorts down. Pun intended
I have a core position in SDRL and Call Options spaced out for two years. It's just a waiting game for me.
I say BS. SDRL down 6% while Oil down 2.5% because Petroleum Inventory (Gas, Heating Oil, etc.) increased by 2.5 million ( Claimed total Inventory is 1.3 Billion). WHILE Crude Inventory FELL by 4.3 million.
Although that includes all sectors, Industrial Growth supports their increased demand for Oil. China is the largest importer of Oil taking over 7 million barrels per day. These figures are way above what analyst estimated they would import . The Saudis have stated that demand for oil and supply is Balanced. Unlike USA estimates of a 2.5 million barrels per day surplus. Who do you believe?
Do not believe everything you read. Media has overblown supply while demand is booming. Ex. Not all barrels of oil are the same quality. Therefore the final distribution of refined products, Gas, heating Oil, etc. vary greatly the number of barrels required to produce one unit. USA Sources used to determine supply numbers and projections are estimated. The general public have a UNSATISFIABLE appetite for oil. From electricity, gas, heating oil, natural gas, manufacturing, motor oil etc. the demand for oil is increasing exponentially with population growth. Keep your eyes wide open.
Look for a buying opportunity around 10:30- 11:30 the rise into close to opening price. Let the weak hand fall on short push then jump in on next run up. SDRL will be around for the next 40 years. Oil close to $90 in 2016. IMO
Greece agrees to terms for another handout. China stops Shorts. Iran misses deadline and removal of sanctions will not take place until group reviews any terms for 60 days. Sounds like media is round the corner for a play upward. If Media plays: "Saudi reduce production" or "demand continues to rise dramatically". Then back up the truck.
Most predictions are in the mid $80 range. SDRL should trade for $20 by then. Then 2017 predictions are close to $100. SDRL is a long term buy and hold with the possibility of 200% returns over a couple years.
Baker Hughes (BHI) reported that the weekly US crude oil rig count fell by three, from 631 to 628, in the week ending June 26. The latest figure marks 29 consecutive weeks of falling active crude oil rigs. In those 29 weeks, the crude oil rig count fell by 947.
Funny they failed to mention that the Oil Rig count just this past Oct was1620ish a fall of about 1000 rigs in just 9 months....that's huge.
Too much hype on the Iran deal, wont happen
drop was to enable shorts to cover
Oil price drop over exaggerated by media outlets
Major Market conditions poor, investors looking for value play, SDRL good choice