Pescod never misses an opportunity to plug Connacher...
CRUDE OIL (March Delivery) $56.92 +2.91
NATURAL GAS $ 7.72 +0.78
The oil and gas market has had a bearish glow for much of the last few months and everyone just seems to be wondering when and under what circumstances oil would decisively break under $50.00.
I guess the old rule is just when everyone expects it, the market decides to make everyone look silly and today we saw one of the biggest moves ever in oil and gas markets as economic numbers suggest the United States isn’t going to need less energy any time soon.
The weather has changed and it looks like much of the eastern United States is getting its first taste of winter and it’s going to last longer than previously thought. According to Bloomberg, the National Weather Service is predicting below normal temperatures will persist in the eastern U.S. for the next two weeks.
Adding to all this is the suggestion that the Saudi’s will be dropping production by about 158,000 barrels a day and the Saudi’s seem to be the only member in OPEC with any credibility.
The $2.91 move in the price of oil and 78 cents in natural gas, are truly monster moves, but the fact that not all that many oil and gas stocks participated in the move suggests that not everyone is a believer just yet.
As we look at the inventory numbers, particularly for natural gas, it still is hard to get too bullish and we are not far away from spring, the time of year for demand for all energy sources to weaken.
We can’t get too pessimistic about this market though, and we have this habit of asking people, “If you could only buy one stock right now, what would it be…” to the point that to some, we might be a tad of a pest from time to time.
When we ask our own self that question—if I could only buy one stock, what would it be? Connacher Oil and Gas seems to be the name we answer our question with. Just four to six months away from production on their SAGD project and just a few weeks away from a tour of analysts, PR people, and newspaper-types, we have a feeling that for those who haven’t heard about Connacher before, you are about to hear about them in much more detail. |
