Oil Stocks to Sell

Oil Stocks to Sell
By www.ProfitableInvestingTips.com

http://profitableinvestingtips.com/investing-tips/oil-stocks-to-sell
The price of oil is coming back up a
little but there are still oil stocks to
sell. The Street offers its opinions.

The steep decline in oil prices over the
last year has forced oil companies to
pull back on investments in
production.

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Before We Continue…

The number of oil rigs operating in the
U.S. has continued to drop and is now
at the lowest level since 2010,
according to oil services company
Baker Hughes(BHI).

Even though brent crude oil prices
have risen to roughly $65 a barrel — a
high for 2015 — and U.S. West Texas
Intermediate crude oil was just above
$57, close to a six-week high, oil
companies are still getting crushed.

Here’s 10 large-cap oil-related
companies you should sell right now if
they’re in your portfolio — with the
worst performing companies at the
end of the list — using TheStreet
Ratings, TheStreet’s proprietary
ratings tool.

Smart stock investing always requires
fundamental analysis in order to
determine the intrinsic value of a
stock.

The Street offers its propriety tool to
determine which oil stocks to sell.
Factors include worldwide supplies,
demand in North America, Asia and
Europe and political stability in oil
producing regions.

Fracking and Oil Supplies

The oil fracking boom in the USA has
been responsible for the USA
returning to the top ranks of oil
producers.

Oil reserves in the USA are at
historically high levels, which drives
prices down.

The Saudi’s are not cutting back on
production as they do not want to lose
customers on one hand and they do
not want to lend a helping hand to
their arch enemy Iran on the other.

The Wall Street Journal notes that
despite a recent surge in prices oil
drifts lower as investors realize that
enthusiasm has gotten ahead of
common sense.

Oil prices wavered Monday, then
settled lower, amid uncertainty about
the strength of the recent price rally.

Light, sweet crude for June delivery
settled down 16 cents, or 0.3%, at
$56.99 a barrel on the New York
Mercantile.

Brent crude, the global benchmark,
fell 45 cents, or 0.7%, to $64.83 a
barrel on the ICE Futures Europe
exchange.

Prices have rallied more than 30%
since hitting a six-year low in mid-
March, but analysts say the market
remains oversupplied and prices could
be due for a pullback.

“The energy markets have gotten
ahead of the actual data,” saidMichael
Corcelli, chief investment officer at
Alexander Alternative Capital LLC.

For prices to rally, he said, “we need
firmer demand and some type of
tangible supply response.”

Until Things Settle Down in
the World

Russia annexed part of Ukraine and is
supporting separatists in other parts.

Sanctions by the USA and Europe are
hurting Russia but it is unclear if
Russia will change its behavior and if
sanctions that hurt its oil industry are
going to get better.

Iran has sort of agreed to cut back its
nuclear industry to guarantee that it
will not produce a nuclear bomb, but
negotiations are not over yet.

If Russia is able to drill more, produce
more, and sell more, it will continue to
drive the price of oil down.

Likewise if Iran is able to export again
it will keep prices in the low range.

According to Newsweek Iran is being
courted by Europe in expectation of
sanctions being lifted.

“In downtown Tehran, the German
electronics powerhouse Siemens AG
opens and closes for business each
day.

But since 2010, no new business has
been done there.

“You walk in the door and the staff will
tell you, ‘We are keeping the office
open until the Iranian sanctions are
lifted,’” says Michael Tockuss,
managing board member of the
German-Iranian Chamber of
Commerce Association, in Hamburg,
Germany.

“People forget that many companies,
like Siemens, have a history with Iran
that goes back more than 100 years.

They stick to the rules, but they keep
up the relationship.”

If you are wondering which oil stocks
to sell, keep track of the negotiations
with Iran over its nuclear program and
any lifting of sanctions.

Oil Stocks to Sell

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