Oil companies and other industry-related companies Exxon Mobil (NYSE:XOM), Ultra Petroleum (NYSE:UPL), Southwestern Energy (NYSE:SWN), Kinder Morgan Energy Partners (NYSE:KMP) and Whiting Petroleum (NYSE:WLL) all closed down Wednesday as oil prices took a breather.
Oil prices dropped after a government report showed that inventories are growing as demand softens in the U.S. Benchmark crude for June delivery was down $1.81 to settle at $109.24 a barrel on the New York Mercantile Exchange.
In other NYMEX trading for June contracts, heating oil fell 4.78 cents to settle at $3.143 a gallon, gasoline futures lost 0.69 cent to $3.3225 a gallon and natural gas was lower by 9.4 cents to $4.644 per 1,000 cubic feet.
The U.S. dollar index shrunk 0.15 percent to $73.01, down from Tuesday's 73.127 close. The dollar index has fallen 7.5 percent so far in 2011.
Whiting Petroleum (WLL) closed Wednesday at $64.05, falling $2.00, or 3.03 percent.
Thursday, May 5, 2011
Exxon Mobil (XOM) (UPL) (SWN) (KMP) (WLL) Trade Down on Slowing Oil Demand
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1 comment:
Finally a good opportunity to buy KMP based on nothing news yesterday about general US growth predictions. This is not really news, and usually becomes stale and old in a few days. So we are buying KMP heavily today (5/5/11) and into next week (if we can, as KMP will rise in price quickly). We have been waiting many weeks to buy KMP, sitting patiently. This is the best pullback we will see, and it will not last more than a couple days or so. As such we are buying now while we can, as well as buying a shares of ETE, ETP, MMP, EPB, NKA, OKS. We researched and believe these are the best of the larger group of companies in this particular industry; best of the partnerships. Oil price will return above $110 in a couple weeks or so, as US just printing dollars, and will continue this into the summer and fall; and dollar falling badly and this is continuing. Also nat/gas price and volume sales will rise quickly into the summer as energy use increases. Even if oil and gas prices decline, volmue will pick up in summer, especially as price declines, and this will benefit this group as volume matters more than price at times for the transport/storage industry. In a couple weeks we will be glad we bought today. We see KMP at $105 into mid summer easily, and perhaps $84 by late June. It is a very desirable stock. Cramer covered it and recommended it just days ago, and invited its CEO on the show. And remember the large and increasing nice tax protected dividends to top it all off. All good. Stockaccumulator.
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