04-15-2015, 11:05 PM
Several days ago, oil spiked when headlines hit that Saudi Arabia's oil minister Ali al-Naimi said he was "optimistic" about the future of the price of oil. The spike was confusing because what Saudi Arabia also said, but got no air time, is that the current excess oil production would persist indefinitely, and assure that the scariest chart for oil bulls, namely crude oil inventories in the US
OPEC has criticized unidentified non-member countries for their refusal to cooperate with the oil exporter group in propping up prices and repeated its call for them to do so.
OPEC publication urges non-members to help stabilize oil market - Yahoo Finance
Crude prices rose on Tuesday after the U.S. Energy Information Administration said it expected U.S. shale oil output to record its first monthly decline in over four years. Front-month Brent crude futures were trading up 34 cents a $58.27 a barrel by 0106 GMT, while U.S. crude had risen 31 cents to $52.22.
Oil prices rise on expected U.S. shale production dip | Reuters
Has oil bottomed out yet and what would the picture in the Middle East look like if it has? Oppenheimer suggests that there will be an increased wave of mergers and acquisitions (M&A) among other things. Companies looking to benefit the most from this would seemingly be Exxon Mobil Corporation (NYSE: XOM). 24/7 Wall St. has noted that Exxon Mobil has been one of the greatest stock buyback outfits in history, and the company has been cited by many sources in recent weeks and months as the most likely acquirer ahead.
Why Oil Stocks Will Get More Expensive - ExxonMobil Corp (NYSE:XOM) - 24/7 Wall St.