Oil Stocks in massive sell-off, down 12% since start of 2007

[jsamuel]

These people are saying, "I can't figure out why oil keeps dropping." Well it's because oil has been OVERVALUED for the past 3 years. Just before that it was at a 25 year low at $25 a barrel. A few months ago I warned people here at DU to sell their oil stock and was greeted with some who did and some who were very skeptical. Anyway, oil is in a free-fall. Sure, it is a "nightmare" for oil traders, but it is great for the American consumer. I like to think that my Prius and other hybrids are helping this, but there is no data on that.

http://eresearch.fidelity.com/eresearch/markets_sectors/analysis/story.jhtml?storyid=NEWS.CBSMW.FCAF870D34074B0E8805.62BCDC524784&provider=CBSMW&product=CBS/TOPS&category=latestmktcommentary

Oil sell-off: The usual excuses don't quite apply this time

Prices down over 10% since the year's start
SAN FRANCISCO (MarketWatch) -- Crude futures have fallen more than 10% since the start of the year, but have prices weakened for all the right reasons?

...

"I can find very little reason for a big movement in oil prices," said Charles Perry, chairman of energy-consulting firm Perry Management.

...

And "no one seems to pay any attention to OPEC, and probably rightly so. OPEC can't ever seem to get it all together," he said.

...

Overall, the decline in crude prices is really a "nightmare sell-off," said Kevin Kerr, editor of Global Resources Trader, a newsletter service of MarketWatch, the publisher of this report.

...

http://eresearch.fidelity.com/eresearch/markets_sectors/analysis/story.jhtml?storyid=NEWS.CBSMW.748248EECD59423DADB5.86D9D04690BA&provider=CBSMW&product=ROR/257&category=headline

Oil breaks key support level, tumbles $2

LONDON (Reuters) - Oil plunged more than $2 a barrel on Tuesday to its lowest level in a year-and-a-half as mild winter weather in top consumer the United States pushed prices through a crucial technical support level.

Oil is down nearly 12 percent since the start of the year.

"We are seeing unfettered selling, any and all supportive factors are being ignored," said Fimat in a research note.
By 1518 GMT, U.S. crude fell $1.62 to $54.47 a barrel, after tumbling more than $2 earlier in the session. Brent crude traded down $1.28 at $54.32.

Both international benchmarks were at their lowest since June 2005.

...

[On the Road]

1. Oil Will Probably Keep Dropping for Several Years

Stock prices were factoring in continued high prices. But just like the 1970s, the current oil crunch has unleashed forces that will moderate prices in the long -- or at least the intermediate -- term. When ordinary investors look start adding oil stocks, the game's probably over.

[Warpy]

2. My oil stock has gained about 12% over last year

and share price isn't the whole story. It's also managed to pay out a very nice dividend.

My pop was pretty good at picking stocks. It is NOT Exxon stock.

[jsamuel]

3. ah, that is oil COMPANY stock, I am talking about the actual product, oil

[Warpy]

6. I sincerely doubt it will

simply for the reason that this country is lousy financial shape and the dollar has declined 40% against most currencies, making the floor a whole lot higher than it was 6 years ago. Per barrel price will not drop below it, no matter how much of an oversupply is pumped out of the middle east.

The only reason it's declining now is price manipulation by the oil producing countries who have heard the dirty words, "alternative energy" and realize that more than one technology is starting to mature.

They're not going to give it away, though.

On edit: more clarity might have been achieved with the words, "stocks of oil" rather than "oil stocks."

[Mojorabbit]

4. First hurricane to form in the gulf and

it will go through the roof again. My stocks have done very nicely and I am not worried about the swings. Long term is my outlook and it will go up.

[taught_me_patience]

5. Actually it was more likely caused by Goldman Sachs

shaking up their commodities index...

http://www.wallstreetwindow.com/drupal/node/1662

In the long run oil will continue to rise as America and the rest of the world are not committed to conservation. My oil stock is up 15% since I bought last year and is rewarding me with a nice dividend.

Not worried at all...

[RB TexLa]

7. holding mine, they are the only North American stocks I kept after 9/11