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Petroleum

Beware the approaching storage capacity limitAn article in The Guardian reveals that the world's oil storage is now at 75% of capacity, and Canada may be just days away from reaching capacity. The rest of the world may still have a couple months. But as oil storage runs out, storing excess crude is going to become less of an option for producers. They will have to either stop production or sell at lower prices. The Guardian is warning that this could lead to $10 per barrel oil. I'm not sure we'll get that low as economies come back online, but this does mitigate some of the upward price pressure we've been seeing from dollar inflation and reopening businesses in China. Oil itself may or may not take a price hit, depending on whether producers decide to stop production or sell at lower prices. But producers's stock prices will fall regardless, so the best way to play this on the short side might be to short oil and gas stocks. On the long side, there's an opportunity in shippers. I didn't realize this was happening, but Saudi Arabia has already driven tanker booking costs to record highs with its increase of oil output. And now tanker booking fees may go even higher as oil producers all over the world look to ship their excess crude to available storage locations. The danger with playing it this way, however, is that tanker demand will eventually fall as storage capacity runs out and producers cut production.
FX:USOIL
by ChristopherCarrollSmith
3
WPX a true value ahead of earnings 2/26A couple months ago, WPX Energy announced that it was raising its production forecast for 2020 and will initiate a dividend sometime this year. The share price appropriately rocketed to $14 or so. Over the last few months of weak oil prices, it's come back down to as low as $11.50. However, it's now making a rounding bottom, with oil prices strengthening thanks to the coronavirus slowdown. According to Fidelity, WPX now has the fourth best PEG ratio in the entire market, at 0.07. Zacks puts the PEG higher, but still good at 0.54. WPX's analyst summary score is 6.6/10. WPX has earnings coming up on February 26, so there's some risk to buying now. (WPX doesn't have a great history of beating estimates.) On the other hand, this could be the earnings report on which they initiate their dividend, in which case the price should rise regardless of the earnings result. I am tentatively forecasting $20 per share by early next year, though I've no idea when it will run.
WLong
by ChristopherCarrollSmith
Occidental Petroleum: Short opportunity on the Falling Wedge.Occidental Petroleum Corp (OXY) has been trading within a Falling Wedge since the start of 2019 (1M RSI = 31.189, MACD = -6.930, Highs/Lows = -12.8700, ADX = 47.707). The RSI on the 1D chart has clearly marked the last 3 Lower Highs near the 61.000 level. We expect a decline based on that pattern and are targeting the 40.10 Support. ** If you like our free content follow our profile (www.tradingview.com) to get more daily ideas. ** Comments and likes are greatly appreciated.
NYSE:OXYShort
by InvestingScope
OAS - Had A Bad 2019 But Could Bounce BIG If Earnings Are GOODOasis Petroleum Inc. is an independent exploration and production company. The Company is focused on the acquisition and development of unconventional oil and natural gas resources in the North Dakota and Montana regions of the Williston Basin. Its segments include Exploration and Production, Well Services, and Midstream Services. The exploration and production segment is engaged in the acquisition and development of oil and natural gas properties. The well services business segment (OWS) performs completion services for the Company's oil and natural gas wells operated by Oasis Petroleum North America LLC (OPNA). The midstream services business segment (OMS) performs salt water gathering and disposal services, fresh water services, natural gas gathering and processing and crude oil gathering and transportation and other midstream services for the Company's oil and natural gas wells operated by OPNA. The Company also operates a well services business and a midstream services business. SHORT INTEREST 58.33M 07/15/19 P/E Ratio (with extraordinary items) -9.78 Analyst Target Price: $7.06 Analyst Recommendations: OverWeight Company Earnings Call 7 August.
OLong
by DEXWireNews
Better Alternatives to MPC in Petroleum Sector Clearly, moving averages show that MPC is headed towards increased gains. However, it is having a difficult time convincingly breaking through downward short-term resistance. Moreover, oscillators at the monthly chart suggest a sell as do oscillators for the daily chart, primarily RSI and momentum. However, if you look at the comparison between other ways to invest in oil such as Brent crude, WTI, or one of the most liquid oil ETFs, MPC clearly is under-performing recently. MPC just barely beat out the S&P 500's energy sector while more of the liquid petroleum assets all greatly outperformed. The dividend yield per share is only 1.8 percent while the stock price is 11 times earnings. Overall, I am not confident in this stock's strength compared to its peers or its technicals. However, this does not mean the price won't go up, it just won't go up as high as other alternatives if the price of oil continues to climb. Because of this, if you are bearish on oil then you should get into the sector, but MPC is probably not the best way to do that.
NYSE:MPC
by WhiskeyTangoFoxtrot3
Hindustan Petrol oil NSE stock buy opportunities at demand levelHindustan Petrol oil related NSE stock buy opportunities with new weekly demand level created around 233, following suit what Brent Oil and Light Crude Oil are doing, all three reacting to monthly demand levels. There is a clear long bias with a very strong reaction from a monthly demand imbalance around, a very strong monthly pin candle has been created four months ago. That reaction has created a new weekly demand level around 175. No shorts are allowed in this oil related Indian NSE Stock, Hindustan Petrol HINDPETRO has a clear long bias now. This analysis is similar to Indian Oil Corp IOC supply and demand analysis with similar demand levels being created Very strong weekly supply level created, no reasons to go short. We don’t need any kind of lagging o non lagging indicators, no earnings, just pure supply imbalances in order to plan a trade.
NSE:HINDPETROLong
by AlfonsoMoreno
USOil / W1 : bulls may be TP and cause a pullback to supportsNOTE : this trade is counter trendy, so leverage must be reduced to allow a wider stoploss. Also please note that for now the trading signal (step 3 of the strategy) isn't triggered on D1 timeframe. All I can see here is that the weekly context can be good to trigger some pullback trades and profit from those who lock on the previous gains by buying the 40$ area. Sinewave suggests that TP pattern is at play; momentum tends to confirm that the short term momentum is overbought. But this one also says that we could squeeze the momentum, meaning that if prices were to exit from the top and break out of the channel, this trade will have to be canceled. Hope this idea will inspire some of you ! Don't forget to hit the like/follow button if you feel like this post deserves it ;) That's the best way to support me and help pushing this content to other users. Kindly, Phil
TVC:USOIL
by PRO_Indicators
2
$GPORLooks like a buy to me at these levels: - 1&2D Clouds have crossed bullish, 3D looking like its on the verge. - Momentum is winding down, but I don't expect the price to react to much. Likely looking at a 2-3 week sideway/slight downward action. - High to mid 11s would be my entry, if I don't just bite the bullet and scoop some this week. - Upside looks good, there is little in the way of getting to low to mid 20s. I expect slight chop around 17-18 but I think it'll blow through resistance.
GLong
by talaenyx