Buyers helping form a base

Posted by bakkenexpert

Update: A few hours after I published this, the Dow once again tanked bringing oil stocks down as well. My fingers are crossed for tomorrow.

So I’m getting a little annoyed at using the word “Bakken” in every blog title so I’m going to stop doing that for a bit. After yesterday’s selloff in the morning, our plays rebounded later in the day to curb losses. With Iran causing geopolitical turmoil with some mid range ballistic missile tests, oil has rebounded slightly today causing an end to the violent selling of the past few days. The oil bubble has a number of things keeping it from bursting at the moment and I don’t see these dissipating any time soon:

• Global demand is not going to go away, India and China’s economies are still experiencing substantial growth and short term hiccups have not altered the overall trend.
• The hurricane season is upon us and we were quite lucky last year to escape relatively unscathed. 7-10 hurricanes are expected this year and if there are even 1 or 2 Category 4 or higher, significant damage may occuring taking weeks or even months to bring capacity back online
• Africa and the Middle East are always mired in ebbs and flows of geopolitical turmoil. You would think we are all immune to this by now, but that is not the case, another pipeline burst in Middle East or rebels in Nigeria can cause a $5 spike within minutes.

The points above are rudimentary and are not a shock to anyone, but the dynamics of oil price action are really this simple. Today, our bakken plays have rebounded and if we can hold the gains the rest of today, I’ll breathe a sigh of relief and my sentiment will be improving for the upcoming weeks into earnings season.

Symbol	Last Trade		Change		Volume	Avg Vol (3m)
WLL	11:10AM ET	97.09	1.02	1.06%	213,832	1,044,900
MDU	11:10AM ET	34.24	0.76	2.27%	275,767	1,039,820
SM	11:10AM ET	56.45	1.97	3.62%	335,487	1,218,680
CLR	11:10AM ET	65.56	0.20	0.31%	433,356	1,630,830
EOG	11:10AM ET	116.09	1.25	1.07%	927,165	3,161,870
NOG	11:09AM ET	12.23	0.04	0.33%	98,120	608,412
KOG	11:09AM ET	3.99	0.19	5.00%	287,763	1,560,070
KDKN.OB	11:08AM ET	2.10	0.10	4.55%	11,385	244,616
BSIC.OB	11:07AM ET	1.77	0.03	1.67%	28,541	94,451.6
XTO	11:10AM ET	60.60	0.18	0.30%	1,923,685	7,184,200

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Tags: bakken china geopolitical pressure india oil sm