Happy Thanksgiving everyone! I hope you had a great time with your friends/family or whatever ritual you follow for the holidays! My ritual involves spending a week with my family and using the computer as little as possible.
After a relatively peaceful week, I turned my attention to the OPEC meeting that was occurring over the last few days. I was waiting to see what the decision was regarding whether or not they were going to cut production. There is quite the oil glut on the markets right now. I didn’t really expect any cut because of the pressure that Saudi Arabia wants to put on the US drillers in Texas and North Dakota. Plus, the other OPEC members that want a cut in production Saudi (the biggest producer) doesn’t like. So, what happened? As expected, the production of oil didn’t change and the price of WTI crude fell.
Sure enough, there was plenty of blood in the streets.
Black Friday Purchases
I added to all of my oil positions besides KMI. I was somewhat disappointed that it didn’t take as big a hit as the other companies, but there is plenty of time. I used funds that have been left over from purchasing my house. I could have bought more, however I plan on using that cash to buy on dips and for any house emergencies that occur. I will slowly deploy all that capital as the cash in my house fund grows from my paychecks.
Additionally, my biweekly purchase of $200 occurred in my Loyal3 account on Wednesday. I purchased 4.08 shares of Unilever. This added approximately 6.6 to my income.
Over the last week I added $260.15 to my 12 month forward income, which now stands at $4884.15.
Was today the best day to buy oil stocks? Could macro factors make a better price tomorrow? Yes and Yes, but there is no time like the present. The price of oil does affect how profitable these companies are, but all of the companies I bought have been around when oil prices were low. I do not expect the price of oil to destroy or adversely hinder any of the above. Today was a great buying opportunity and I took advantage of it.
Did anyone increase ownership stake in an oil companies?
Disclaimer: BBL, BP, COP, CVX, KMI, UL, XOM