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Strong Bakken buying today on dollar weakness
Posted by bakkenHas it gotten to the point that we hope that hurricanes will form in the Gulf Coast to prop up our oil stocks? Sadly enough, for many, it definitely has, although they will state they aren’t looking for any human losses, just some disruption in supply. Today, tropical disturbance Fay missed oil rigs in the Gulf of Mexico, but shareholders of Bakken stocks were probably pleased that a weak dollar combined with an uptick in heating oil buoyed our plays today. Among the big gainers today were 2 of the “pure plays” in the group Continental Resources (CLR) and Whiting Petroleum (WLL) which were both up more than 5%. In addition, Venezuela’s Oil Minister Rafael Ramirez indicated that it’s may propose an oil production cut at the next OPEC meeting if crude prices decline further. The good news for Bakken investors is that oil does appear to be oversold. For example, the chart below indicates that the Energy SPDR (XLE) is currently trading below its 20,100 & 200 Day Moving Averages and trading close to its lower Bollinger Band. Volatility, however will continue to reign and expect to see swings of $4 and up within a matter of hours as competing forces battle to determine the long term trend of oil.
| Symbol | Last Trade | Change | Volume | Avg Vol (3m) | ||
|---|---|---|---|---|---|---|
| WLL | 4:01PM ET | 89.64 |  5.99 |
7.16% |
744,910 | 1,180,390 |
| MDU | 4:02PM ET | 31.58 | 0.11 |
0.35% |
564,635 | 1,125,130 |
| SM | 4:01PM ET | 42.99 | 1.79 |
4.34% |
919,588 | 1,444,730 |
| CLR | 4:04PM ET | 47.65 | 4.11 |
9.44% |
2,383,706 | 1,871,040 |
| EOG | 4:02PM ET | 99.88 | 5.14 |
5.43% |
4,166,094 | 3,844,690 |
| NOG | 4:00PM ET | 7.39 | 0.05 |
0.68% |
311,832 | 641,200 |
| KOG | 4:00PM ET | 3.03 | 0.13 |
4.48% |
758,228 | 1,459,890 |
| KDKN.OB | 3:59PM ET | 1.65 |  0.15 |
8.28% |
35,126 | 195,115 |
| BSIC.OB | 2:26PM ET | 1.60 | 0.05 |
3.03% |
20,993 | 78,292.3 |
| XTO | 4:01PM ET | 46.80 | 1.35 |
2.97% |
15,414,211 | 11,663,700 |
