CVX is selling off Why???

Anyone with an ideas as to why CVX is selling off today. They seems to be in a good position to profit from gas prices, but it keeps going lower.

No refinery problems like COP either.

 

Crude oil inventories are massive. The world is awash in crude oil, literally.

Check out the inventory numbers. They have run out of places to store crude oil.

 

Only until summer when all of sudden inventories disappear and oil spikes.

I feel like an ass for not going big OIH when it was 130 recently...I looked at it and said, "shit, that's dirt cheap" and didn't do anything.

Oil companies will find another way to kick up prices.

Think oil is headed for a big correction?

 

Working off the froth. You don't expect it to keep going up everyday, do you?

 

Of course I do.

It will be interesting how it reacts as it approaches the previous highs.

 

I think oil prices has hit a wall at around $67. It hasn't been able to stay over it or a while now. I think there will be more downside to this - probably retest 62.50 in a week and further downside ~ $57 - $60 retest.

unless of course, Bush decides to send Iran an early Christmas Gift.

 

I think a better question is; why did the refiners follow the market down? With rbob up and wti crude down the crack spread got wider and the Valero Mckee refinery is down for 2 weeks. The refiners did seem to experience less downside than the drillers and integrateds though (with the exception of XOM), MRO in particular held quite well.

As far as CVX goes they did get hit with a downgrade the other day, but I think it mostly just followed crude and the market down. The entire oil sector was just as susceptible to the downturn back in February as most other equities, so I guess it makes sense on an uncertain day like today. Looks like a good time to pick up a refiner at a discount unless you think the overall market is headed much lower.

 

I agree. I personally don't feel oil will break 70-75 by mid-summer. I feel oil and gas blew its load too early this year and will taper off. Same thing with refinery stocks. I love a short play in VLO taking her down into the 60's...

 

You never know if another Katrina is round the corner.

 

Funny downgrade timing... perhaps someone wants shares of a good company at a discount. CVX has a LOT of oil in the Gulf. I sold at 83 but will buy again. I believe they downgraded Apple in the 80s or 90s or both.... look at it now. Time for another downgrade or mention of options scandle. I thought CVX was tied to both crude and the dow but it's been acting funny. It's a complex company.. I work there. They had a big internal PR conference Tuesday... not sure what was said