Oil continued its downward trend yesterday in grand fashion closing near $36 a barrel.
If you read my last story, Oil: could this be the next Industry on the rise? I’m still looking at PZE as the stock to own when prices start to rise. I found this next story at Zacks.com witch seem s to confirm my ideas.
Zacks.com
Oil Inventories Getting Full
Wednesday February 11, 3:09 pm ET
By Sheraz Mian
In its weekly status report, the Energy Information Administration (EIA) reported today another substantial crude oil inventory build for the week ended February 6, highlighting the continued mismatch between supplies and anemic demand.
Given the anemic demand and continued supply overhang, we would not be surprised with a renewed downward push in oil prices in the coming days. However, we do not think that prices can stay in that range for any great length of time. The inventory situation is expected to improve as OPEC’s supply cuts take effect, most likely in the spring months, and visibility on the U.S. economy improves following the expected enactment and implementation of the new stimulus program.
If you bought those CALLS I recomended on monday, dont panic just yet.
Good Luck
