Shale Lemmings Retreat As Price Recovery Stalls

If we could make up one bankable investment rule for oil
stocks for the past three years – it would be to note precisely
what oil companies are planning for and then plan on the opposite
happening. Oil companies were sure that the oil collapse of 2014
was surely temporary, waiting more than 6 months to make extreme
capex cuts and idle 1000 rigs. Their slow acceptance of the oil
bust assured that 2015 would be a horrible year for oil stocks. In
2016, they came en masse to their senses, cutting capex on average
nearly 70 percent and began selling…

If we could make up one bankable investment rule for oil
stocks for the past three years – it would be to note precisely
what oil companies are planning for and then plan on the opposite
happening. Oil companies were sure that the oil collapse of 2014
was surely temporary, waiting more than 6 months to make extreme
capex cuts and idle 1000 rigs. Their slow acceptance of the oil
bust assured that 2015 would be a horrible year for oil stocks. In
2016, they came en masse to their senses, cutting capex on average
nearly 70 percent and began selling…