drbubb Posted October 10, 2008 Report Share Posted October 10, 2008 BE CAREFUL I have been making some positive noises about OIH (but no buying yet), and have targetted $80-90 as an area for a possible low in Oil. That may still prove right, but I sugggest people tred carefully, as I will myself. I had an interesting PM from someone within the industry, that made these points: + projects beginning to be pulled. + oil Service companies pushed up ratse massively over the last 3 years, but economics for deepwater megaprojects are stretched to the limit + in a lower oil price environment, rates will have to fall back alot to make offshore projects viable, especially when libor rates are so high Result; there will be a huge squeeze on earnings in the offshore sector. Onshore may be brighter, however. Link to comment Share on other sites More sharing options...
littledavesab Posted October 10, 2008 Report Share Posted October 10, 2008 Thanks for the warning Link to comment Share on other sites More sharing options...
Benall Posted October 10, 2008 Report Share Posted October 10, 2008 Many thanks for the heads-up. Link to comment Share on other sites More sharing options...
Gatesy Posted October 10, 2008 Report Share Posted October 10, 2008 BE CAREFUL I have been making some positive noises about OIH (but no buying yet), and have targetted $80-90 as an area for a possible low in Oil. That may still prove right, but I sugggest people tred carefully, as I will myself. I had an interesting PM from someone within the industry, that made these points: + projects beginning to be pulled. + oil Service companies pushed up ratse massively over the last 3 years, but economics for deepwater megaprojects are stretched to the limit + in a lower oil price environment, rates will have to fall back alot to make offshore projects viable, especially when libor rates are so high Result; there will be a huge squeeze on earnings in the offshore sector. Onshore may be brighter, however. Well, already lost a shed load on RIG, not sure it's worth selling now. Link to comment Share on other sites More sharing options...
drbubb Posted November 10, 2008 Author Report Share Posted November 10, 2008 OIH is predicting a rally in Oil (USO) See OIH vs. USO ... update ...or so it would seem I have been making some positive noises about OIH (but no buying yet), and have targetted $80-90 as an area for a possible low in Oil. That may still prove right, but I sugggest people tred carefully,... $80 has been right so far Room for a (slightly) lower low in WTI Crude Link to comment Share on other sites More sharing options...
drbubb Posted November 10, 2008 Author Report Share Posted November 10, 2008 Jan. USO Calls ======== Bid / Offer UBOAL 15.20 ========= 13.80 14.30 56.00 38.00 UBOAM 13.60 +0.10 10.00 13.00 13.50 22.00 39.00 USOAH 12.90 ========= 12.30 12.80 92.00 40.00 Link to comment Share on other sites More sharing options...
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