Even though yesterday the US and other nations would release 60m barrels to counter high prices and, arguably, helped bring prices as low as $103, crude oil continued to go up.
Today's low for crude was nearly $105 now we're back at 108 (again high was 112.51), so crude right now is highly volatile; IV to historical IV for crude futures is 178% while USO is showing 138%.
Stocks affected are (as of noon wall st time):
- XOM which popped around 4% at open, but has come back down in tandem with crude futures and sitting around 2%
- CVX looking way better around 3%
- SHEL gap up is still up there nearly 6%
- BP gap up is higher than XOM but came down slightly but is near 5% gain
XLE is a great ETF if you want to get into oil stocks and it pays a relatively high dividend.
I think based on what the POTUS said, crude can go as high as 112 to 115 or more if the Russian ban actually happens, if not, the mean for crude futures is around 98, so expect oil stocks to take a huge hit.
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