When to Buy Oil Stocks

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http://www.profitableinvestingtips.com/profitable-investing-tips/when-to-buy-oil-stocks When to Buy Oil Stocks Oil prices have been on a five month slide. Nymex crude hit $64.74 which is the lowest in five years. The last time oil was priced this low was the depth of the great recession. The US oil fracking boom is partly to blame as there is glut of oil in North America. But, in addition, OPEC is not cutting back on production, which is what the cartel usually does to prop up prices. As a result oil stocks have taken a beating. Is this when to buy energy stocks? One would usually expect to see investors picking up great deals at this point but that is not the case. As an article in the Wall Street Journal notes, energy stocks have few buyers even at bargain basement prices. Energy stocks are on sale following a five-month plunge in crude oil, but so far few investors are heeding the temptation to bargain-hunt. Portfolio managers and analysts covering the sector are bracing for a wave of dividend cuts, share-repurchase delays and capital-spending reductions that will likely ripple across an industry reeling from the 38% tumble in U.S. crude futures since June. Distressed-debt investors are circling a handful of deeply indebted U.S. shale-oil producers that are deemed unlikely to survive further oil-price declines without mergers or overhauls. It would appear that perhaps too many companies in the energy sector were too highly leveraged and are in trouble due to falling prices. And, it may well be that prices will continue to fall. When to buy oil stocks is when the price of crude bottoms out but that is not yet the case. Factors That May Signal a Turnaround Oil prices respond to the laws of supply and demand. Supply is high with the US fracking boom and OPEC refusing to cut back. Demand may we weakening. The Chinese economy is slowing and that means less need for raw materials and energy. When to buy oil stocks is probably not when there is still the risk of another recession in Europe and a slowdown in China. When to buy oil stocks will be when OPEC signals a cutback and when North America, Europe and China are all well on their way out of a recession. Not Just Oil Stocks It is not just oil stocks that are hurt when signals of economic weakness come out of the USA, Europe or China. World stocks and not just oil are down due to weak Chinese economic data and even news of a weaker than expected start to the North American holiday shopping season. CHINA FACTORIES: A survey by HSBC Corp. showed Chinese manufacturing activity weakened in November, adding to signs an economic slowdown is deepening. HSBC said its purchasing managers’ index declined to 50.0 from the previous month’s 50.4 on a 100-point scale on which numbers below 50 show activity contracting. The bank said domestic demand was sluggish and new orders were weak. China’s economic growth slowed to a five-year low of 7.3 percent in the latest quarter.

Transcript of When to Buy Oil Stocks

  • 1. When to Buy Oil StocksBy www.ProfitableInvestingTips.com

2. Oil prices have been on a fivemonth slide.http://www.profitableinvestingtips.com/profitable-investing-tips/when-to-buy-oil-stocks 3. Nymex crude hit $64.74 which isthe lowest in five years.http://www.profitableinvestingtips.com/profitable-investing-tips/when-to-buy-oil-stocks 4. Before We ContinueClick the links below to get yourFREE training materials.Free Weekly Investing WebinarsDont miss these free training events!http://www.profitableinvestingtips.com/free-webinarForex Conspiracy ReportRead every word of this report!http://www.forexconspiracyreport.comGet 12 Free Japanese Candlestick VideosIncludes training for all 12 major candlestick signals.http://www.candlestickforums.comhttp://www.profitableinvestingtips.com/profitable-investing-tips/when-to-buy-oil-stocks 5. The last time oil was priced thislow was the depth of the greatrecession.http://www.profitableinvestingtips.com/profitable-investing-tips/when-to-buy-oil-stocks 6. The US oil fracking boom is partlyto blame as there is glut of oil inNorth America.http://www.profitableinvestingtips.com/profitable-investing-tips/when-to-buy-oil-stocks 7. But, in addition, OPEC is notcutting back on production, whichis what the cartel usually does toprop up prices.http://www.profitableinvestingtips.com/profitable-investing-tips/when-to-buy-oil-stocks 8. As a result oil stocks have taken abeating. Is this when to buyenergy stocks?http://www.profitableinvestingtips.com/profitable-investing-tips/when-to-buy-oil-stocks 9. One would usually expect to seeinvestors picking up great deals atthis point but that is not the case.http://www.profitableinvestingtips.com/profitable-investing-tips/when-to-buy-oil-stocks 10. As an article in the Wall StreetJournal notes, energy stockshave few buyers even at bargainbasement prices.http://www.profitableinvestingtips.com/profitable-investing-tips/when-to-buy-oil-stocks 11. Energy stocks are on salefollowing a five-month plunge incrude oil, but so far few investorsare heeding the temptation tobargain-hunt.http://www.profitableinvestingtips.com/profitable-investing-tips/when-to-buy-oil-stocks 12. Portfolio managers and analystscovering the sector are bracingfor a wave of dividend cuts,share-repurchase delays andcapital-spending reductions thatwill likely ripple across an industryreeling from the 38% tumble inU.S. crude futures since June.http://www.profitableinvestingtips.com/profitable-investing-tips/when-to-buy-oil-stocks 13. Distressed-debt investors arecircling a handful of deeplyindebted U.S. shale-oil producersthat are deemed unlikely tosurvive further oil-price declineswithout mergers or overhauls.http://www.profitableinvestingtips.com/profitable-investing-tips/when-to-buy-oil-stocks 14. It would appear that perhaps toomany companies in the energysector were too highly leveragedand are in trouble due to fallingprices.http://www.profitableinvestingtips.com/profitable-investing-tips/when-to-buy-oil-stocks 15. And, it may well be that prices willcontinue to fall.http://www.profitableinvestingtips.com/profitable-investing-tips/when-to-buy-oil-stocks 16. When to buy oil stocks is whenthe price of crude bottoms out butthat is not yet the case.http://www.profitableinvestingtips.com/profitable-investing-tips/when-to-buy-oil-stocks 17. Factors That May Signal aTurnaroundhttp://www.profitableinvestingtips.com/profitable-investing-tips/when-to-buy-oil-stocks 18. Oil prices respond to the laws ofsupply and demand.http://www.profitableinvestingtips.com/profitable-investing-tips/when-to-buy-oil-stocks 19. Supply is high with the USfracking boom and OPECrefusing to cut back. Demandmay we weakening.http://www.profitableinvestingtips.com/profitable-investing-tips/when-to-buy-oil-stocks 20. The Chinese economy is slowingand that means less need for rawmaterials and energy.http://www.profitableinvestingtips.com/profitable-investing-tips/when-to-buy-oil-stocks 21. When to buy oil stocks is probablynot when there is still the risk ofanother recession in Europe anda slowdown in China.http://www.profitableinvestingtips.com/profitable-investing-tips/when-to-buy-oil-stocks 22. When to buy oil stocks will bewhen OPEC signals a cutbackand when North America, Europeand China are all well on theirway out of a recession.http://www.profitableinvestingtips.com/profitable-investing-tips/when-to-buy-oil-stocks 23. Not Just Oil Stockshttp://www.profitableinvestingtips.com/profitable-investing-tips/when-to-buy-oil-stocks 24. It is not just oil stocks that are hurtwhen signals of economicweakness come out of the USA,Europe or China.http://www.profitableinvestingtips.com/profitable-investing-tips/when-to-buy-oil-stocks 25. World stocks and not just oil aredown due to weak Chineseeconomic data and even news ofa weaker than expected start tothe North American holidayshopping season.http://www.profitableinvestingtips.com/profitable-investing-tips/when-to-buy-oil-stocks 26. CHINA FACTORIES: A survey byHSBC Corp. showed Chinesemanufacturing activity weakenedin November, adding to signs aneconomic slowdown isdeepening.http://www.profitableinvestingtips.com/profitable-investing-tips/when-to-buy-oil-stocks 27. HSBC said its purchasingmanagers index declined to 50.0from the previous months 50.4 ona 100-point scale on whichnumbers below 50 show activitycontracting.http://www.profitableinvestingtips.com/profitable-investing-tips/when-to-buy-oil-stocks 28. The bank said domestic demandwas sluggish and new orderswere weak.http://www.profitableinvestingtips.com/profitable-investing-tips/when-to-buy-oil-stocks 29. Chinas economic growth slowedto a five-year low of 7.3 percent inthe latest quarter.http://www.profitableinvestingtips.com/profitable-investing-tips/when-to-buy-oil-stocks 30. BLACK FRIDAY: Earlydiscounting, more onlineshopping and a mixed economymeant fewer people shopped overThanksgiving weekend, theNational Retail Federation saidSunday.http://www.profitableinvestingtips.com/profitable-investing-tips/when-to-buy-oil-stocks 31. Overall, 133.7 million peopleshopped in stores and online overthe four-day weekend, down 5.2percent from last year, accordingto a survey of 4,631 people.http://www.profitableinvestingtips.com/profitable-investing-tips/when-to-buy-oil-stocks 32. Total spending for the weekend isexpected to fall 11 percent to$50.9 billion from an estimated$57.4 billion last year.http://www.profitableinvestingtips.com/profitable-investing-tips/when-to-buy-oil-stocks 33. Oil stocks weaken with theeconomy and rise with goodeconomic news.http://www.profitableinvestingtips.com/profitable-investing-tips/when-to-buy-oil-stocks 34. When to buy oil stocks will bewhen the news is better.http://www.profitableinvestingtips.com/profitable-investing-tips/when-to-buy-oil-stocks 35. Picking Bargainshttp://www.profitableinvestingtips.com/profitable-investing-tips/when-to-buy-oil-stocks 36. If weak oil prices persist we canexpect to see mergers andacquisitions in the oil sector.http://www.profitableinvestingtips.com/profitable-investing-tips/when-to-buy-oil-stocks 37. An early example is the purchaseof Baker Hughes by Halliburton.http://www.profitableinvestingtips.com/profitable-investing-tips/when-to-buy-oil-stocks 38. Halliburton (HAL) said Monday itwill spend $34.6 billion to acquireBaker Hughes (BHI).http://www.profitableinvestingtips.com/profitable-investing-tips/when-to-buy-oil-stocks 39. The deal between the second-andthird-largest companies in theindustry would form an energygiant with more than 136,000employees.http://www.profitableinvestingtips.com/profitable-investing-tips/when-to-buy-oil-stocks 40. The best placed investors to pickup deals when the time comes tobuy oil stocks are those already inthe energy sector.http://www.profitableinvestingtips.com/profitable-investing-tips/when-to-buy-oil-stocks