Oil and gas stock prices are gradually tracing a more positive price trend since the stock market low in October 2008. We are also encouraged that average prices for oil and gas over the next 6 years remain higher than for the next 12 months. Our analysis suggests that the short-term orientation of most investors may be putting too much weight on short-term oil and gas price, thereby creating opportunity for investors who may wish to put more weight on long-term oil and gas price.
Moreover, the steep decline that started last summer has leveled out for the past few months. Recent strength in the oil-refining margin measured by the 321 Crack points to possible positive cash flow and earnings comparisons to the first quarter a year ago for the downstream business of integrated companies.
Optimism Creeps Back into Oil and Gas Stocks
Source: Seeking Alpha, Kurt Wulff (3/4/09)
"Oil and gas stock prices are gradually tracing a more positive price trend since the stock market low in October 2008."
