With OPEC indicating over the weekend that it would not change course and cut production, expect oil prices to drop even lower, dealer Jeff Kilburg said Monday.
Dealers are, “looking for more of a bearish short term end product,” the creator of KKM Financial said, in an interview with Closing Bell.
Kilburg said the countries are creating more oil, noting that the petroleum minister has said it’s pumping out about 350,000 more barrels of petroleum a day. “That is why, short term, the cost of petroleum is going lower,” he said. Petroleum costs have dropped about 60 percent since June.
What concerns analyst, Mary Ann Bartels, is that from a technical point of view, there isn’t any ‘bottom’ in petroleum. “We’ve slowed down in international increase. So you’ve got a double negative whammy. You’ve got extra supply.”
While Bartels predicts energy stocks will underperform during the following six to 12 months, she said there’s worth in some specific businesses for those people to be patient.
“Because there’s too little income, especially in fixed income, in the event you are willing to enter the energy market and be patient, it will pay,” she said, adding, “…do not expect the stocks to overcome the marketplace for the next several months.”
BS. We are at Peak Oil with a finite amount of oil in the ground? They are cutting ISIS revenue that way. They make it not worth buying illegal oil from ISIS.
Correct. In 8 months, buy stock. Ride it. The price will astronomically increase when word gets out that wells are running low and shale is becoming scarce. This may be 10-15 years, but you can make a million out of $100.
May b sill question, but how do i buy stock?
Maybe its becouse of ISIS occupied fuel pumps? Where they can sell this oil?
http://www.newsweek.com/isis-islamic-state-baiji-iraq-syria-oil-283524