Everyone knows the API just showed ~ 8 million barrel draw for the second week in row. Over the last 7 weeks, US inventories have dropped 40 Million bbls. Now we are finally under 450 Million barrels of supply, which is ~8% below the five year levels. This is despite the fact we are importing around 7 million bbls per day. This matters because US Production has dropped 2 million barrels of oil per day in the last year. This isn’t changing any time soon because the rig counts are low the frac crew numbers are low. Oh and natty gas is over $3.50/mcf.
The majors are getting blamed for everything, but the midsize onshore producers with the good acreage are sitting undervalued. Guys like OVV, DVN, HES, and CLR are in prime position to rake in some dollars, buy back some shares, up the Divy, or increase production.
Positions: OVV OCT 15 $35 C
What? I sold all my other positions when it hit $75/ bbl.