Investing

is now the time to invest in oil stocks?

  • Last Updated:
  • Nov 18th, 2017 1:13 pm
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Member
Feb 26, 2017
301 posts
81 upvotes
kilburn305 wrote:
Oct 23rd, 2017 9:52 pm
Complete trash. What the hell is going on with Enbridge?
ENF was downgraded to the lowest level investment grade credit rating. Nov 2nd is earnings which should be interesting.
Jr. Member
Aug 16, 2015
141 posts
12 upvotes
Chance7652 wrote:
Oct 23rd, 2017 9:56 pm
ENF was downgraded to the lowest level investment grade credit rating. Nov 2nd is earnings which should be interesting.
I only own enb (unfortunately). not sure it's smart to average down in this sector. AVOID.
Member
Feb 7, 2014
402 posts
19 upvotes
Looking to add to XEG. Crude is trading above $52 and canadian share prices need to reflect that. Surely some room there. Anyone in similar boat here with a target price for XEG?
Sr. Member
Nov 28, 2010
894 posts
124 upvotes
Brampton
Sold like half of my xeg shares weeks ago when it just else to around $11.55 and should have sold the rest when it peaked a bit over $12. I may buy some back if it drops below $11 again. Meanwhile I'm back to being around 10% down in ENB. Looking to br3ak even someday and never touch that stock again and simply keep things simple buy consolidating into VCN and XAW and some xeg maybe
Deal Expert
User avatar
Sep 19, 2004
20300 posts
3091 upvotes
Waterloo
From TD report, echoing what we see. Crude up +3%, XEG -6%

1) Second largest total product draw in 2017: A large draw in both gasoline
and distillates more than offset the slight build in crude stockpiles. Total U.S. total
product inventories fell 9.9 mmbbl (vs. consensus expectations of 1.3 mmbbl) but
were essentially in line with yesterday's reported API estimate of 10.2 mmbbl.

2) U.S. onshore oil rig count down for third consecutive week: Seven fewer oil
rigs were put to work last week which marks the third consecutive week of declines.



3) Investors appear a little more confident in oil price recovery but not
necessarily in energy equities
: Net long WTI non-commercial contracts rose
slightly last week (Exhibit 7). WTI prices are up 3% since the beginning of the month
while the S&P/TSX Capped Energy Index (XEG-T) and the Dow Jones U.S. Oil &
Gas Index (IYE-T) are down 6% (USD-adjusted) and 10%, respectively.
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Member
Feb 26, 2017
301 posts
81 upvotes
Looks like Husky just reported good results as well. Although they missed TD Securities liked the results of MEG energy as well. The prices on the pipelines continues to be at odds with how the companies are actually doing.

I sold 1/3 of my energy stocks in the last week selling 3/4 of IPL and 1/5 of my ENB. Moves were part of a strategy to not have any energy/pipelines in my TFSA. I still have sell prices for all of my KEY and most of ENF but neither is close. Now its time for the familiar strategy of waiting for a rebound...
Jr. Member
Jan 27, 2016
148 posts
95 upvotes
Toronto, ON
lol brutal eh!

Well only energy play I am invested in is a small company on the venture KFG.V our break-even is mid to low 40's so I am ecstatic right now
jerryhung wrote:
Oct 27th, 2017 10:36 am
It won't matter, TSX Energy is barely green :(
Jr. Member
Jan 27, 2016
148 posts
95 upvotes
Toronto, ON
Comments made by Saudi Arabia’s Crown Prince Mohammed bin Salman (MBS), sent Brent crude to its highest in more than two years, to US$59.30 a barrel, Reuters reports. West Texas Intermediate was more impervious to the comments, but it also gained a few cents, to close at US$52.64 a barrel—the highest in six months.

The comments themselves are of the Saudi garden variety, and include a) a stale reassurance that the Aramco initial public offering is still on track for its scheduled takeoff in the second half of 2018; b) a vague pledge to do whatever it takes to support oil prices; and c) a vow to quit its oil dependency and move beyond fossil fuels at some point.

No matter that the assurances have all been made before—the comments add to the already growing optimism about OPEC’s production cut deal, which will almost certainly be extended until the end of next year, after Russia’s Vladimir Putin and now MBS have backed an extension.

As for what will happen after December 2018 in case of an extension, that’s still a mystery, but this seems to be too far in the future for anyone to care about right now, or almost anyone. Saudi Arabia’s Energy Minister Khalid al-Falih said earlier this week that “When we get closer to that (five-year average) we will decide how we smoothly exit the current arrangement, maybe go to a different arrangement to keep supply and demand closely balanced so we don’t have a return to higher inventories.”

These comments suggest that the lower production may become something permanent as long as everyone in OPEC and its external partners agrees, but this is unlikely: Russia’s Alexander Novak publicly said that there are plans to boost oil production next year with or without an OPEC/Russia deal extension.
Member
Jun 28, 2016
207 posts
92 upvotes
loopy1984 wrote:
Oct 27th, 2017 10:43 am
These comments suggest that the lower production may become something permanent as long as everyone in OPEC and its external partners agrees, but this is unlikely: Russia’s Alexander Novak publicly said that there are plans to boost oil production next year with or without an OPEC/Russia deal extension.
This is not true. He said they will boost production if the deal is not extended.

https://www.reuters.com/article/us-oil- ... SKBN1CU1DK
Member
User avatar
Oct 14, 2015
216 posts
26 upvotes
Drumheller
Last night I looked at about 20 U.S. stocks in different sectors, looking for more insider buying than selling; I couldn't find any.

Here is ConocoPhillips (COP) with no insider buying or selling in the past 3 months.
http://www.nasdaq.com/symbol/cop/ownership-summary

If one buys the notion that insiders are "smart money", the conclusion should be obvious.

Unfortunately, I don't know of a "free" site with this kind of info for Canadian stocks.

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