Crude oil prices jumped 11% after 2 days of rally after data showed a steep drop in the number of rigs
drilling for oil in US. This is read as a sign that crude production may begin to decline.
From the monthly, weekly & daily composite charts, we can see that a bottom may be forming. If the crude oil price bottom in 2008-2009 can be a guide, we can expect prices of crude oil to see volatile trading for the next few weeks or even months before a recovery kicks in.
Based on technical consideration, O&G stocks could be a good bet for long-term investment.
Chart: WTIC's monthly, weekly & daily chart as at Feb 2, 2015 (Source: Investorshub)
Note:
In
addition to the disclaimer in the preamble to my blog, I hereby confirm
that I do not have any relevant interest in, or any interest in
the acquisition or disposal of, O&G stocks.
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