MM's holding it down to just under 13 for option expiry, in the face oil being $49's and approaching $50. Yes, there is manipulation. MRO should be trading in the $14's.
Gotta love Goldman. The same "selling into May" gang had been accumulating at the low, and now has pivoted on the trade. GS on the O&G bull run, as $50's oil this summer driving season is a certainty. Leveling out in the $60's in the 4th quarter is looking more probable. Latest article from Reuters below:
"Crude is trading higher on the back of a rare bullish call from Goldman Sachs, which until now had been a long-time bear on oil and even warned of another price crash due to overflowing storage. The investment bank says the market has moved from a state of oversupply to a deficit, and believes major supply disruptions in markets such as Nigeria, Venezuela and China will sharply lower production levels."
mrmean64, the data is already out there regarding E-commerce and their b2b market penetration/share per industry. Trade and manufacturing associations have this data, and they are very reliable. The FTC chose not to follow up on it, even after the Amazon rep's deposition, who explicitly stated that Amazon realized substantial and growing business activities in that sector during the past few years. What this faulty decision bolsters is the certain un-level playing field box stores must endure and the death of b2b sales through box store sales channels. This consequence will only exacerbate the demise of other box stores (Best Buy, JC Penny, etc.) who are in ultimate competition with the Amazons of the world. The death of the box store sales channel model is a matter of when, not if....and the definition of "market" will continue to elude the sanhedrin.
Aside from the current anti-merger political whims of the present administration, this decision reflects the inaccurate analysis of antitrust legal arguments. The current viewpoint of many judges and government agencies, and legal scholars, wrongly discounts E-commerce as a factor in b2b transactions. Sales channels from box stores are going to continue to die on the vine, while the Amazons of the world fill the void. In essence, these box stores are merely real estate companies who happen to sell product.
You might want to put a 12 guage on that bird because WFT is about as good as any acquisition bait gets.
Any oil-related stock is going to bounce up nicely today and tomorrow. Looking for high 13's in the next leg up. Whoever did the covered calls recently at 14.5 is one savvy mofo!
HFC margins should improve after Doha and as oil settles just under $40. Refiners, especially well run refineries, should all do well from now until October. Mid-$36 to $37's in range. GLTA
Don't forget another 3.5 million bpd that will be in play once the regime change in Venezuela happens. The assets down there are in bad shape and need some serious repairs and upgrades, after many years of neglect and technicians not knowing what they were doing. It's bad enough that the Orinoco oil is already very difficult on machinery & equipment mainly due to the high sulpher contents in the oil, which would mean that a lot of these assets will be down for a long period of time. Even if you assume total production there will only be cut in half, that is still about 1.75 million bpd taken out of the market for who knows how long. Marginal producers may or may not be able to absorb all of this immediately. Nevertheless, pricing should easily float to at tleast the mid-$40's under this scenario. JMHO
Good luck in going short with this one. You are going to need it!
I don't know about all that Dilo, simply because he hasn't said anything of substance. BUT that jack #$%$ is more than likely than anyone to get us in a shooting war, especially in the Mideast. So yes, he probably will be huge for rising oil prices.
I don't know, but that's a legit question. GE O&G is gearing up for something big! Whether they are asset acquisitions or wholesale companies, who knows??