drbubb 0 Report post Posted October 10, 2008 BE CAREFUL I have been making some positive noises about OIH (but no buying yet), and have targetted $80-90 as an area for a possible low in Oil. That may still prove right, but I sugggest people tred carefully, as I will myself. I had an interesting PM from someone within the industry, that made these points: + projects beginning to be pulled. + oil Service companies pushed up ratse massively over the last 3 years, but economics for deepwater megaprojects are stretched to the limit + in a lower oil price environment, rates will have to fall back alot to make offshore projects viable, especially when libor rates are so high Result; there will be a huge squeeze on earnings in the offshore sector. Onshore may be brighter, however. Quote Share this post Link to post Share on other sites
littledavesab 0 Report post Posted October 10, 2008 Thanks for the warning Quote Share this post Link to post Share on other sites
Benall 0 Report post Posted October 10, 2008 Many thanks for the heads-up. Quote Share this post Link to post Share on other sites
Gatesy 0 Report post Posted October 10, 2008 BE CAREFUL I have been making some positive noises about OIH (but no buying yet), and have targetted $80-90 as an area for a possible low in Oil. That may still prove right, but I sugggest people tred carefully, as I will myself. I had an interesting PM from someone within the industry, that made these points: + projects beginning to be pulled. + oil Service companies pushed up ratse massively over the last 3 years, but economics for deepwater megaprojects are stretched to the limit + in a lower oil price environment, rates will have to fall back alot to make offshore projects viable, especially when libor rates are so high Result; there will be a huge squeeze on earnings in the offshore sector. Onshore may be brighter, however. Well, already lost a shed load on RIG, not sure it's worth selling now. Quote Share this post Link to post Share on other sites
drbubb 0 Report post Posted November 10, 2008 OIH is predicting a rally in Oil (USO) See OIH vs. USO ... update ...or so it would seem I have been making some positive noises about OIH (but no buying yet), and have targetted $80-90 as an area for a possible low in Oil. That may still prove right, but I sugggest people tred carefully,... $80 has been right so far Room for a (slightly) lower low in WTI Crude Quote Share this post Link to post Share on other sites
drbubb 0 Report post Posted November 10, 2008 Jan. USO Calls ======== Bid / Offer UBOAL 15.20 ========= 13.80 14.30 56.00 38.00 UBOAM 13.60 +0.10 10.00 13.00 13.50 22.00 39.00 USOAH 12.90 ========= 12.30 12.80 92.00 40.00 Quote Share this post Link to post Share on other sites
