Black Friday Oil Blowout!

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

Company Shares Income!
BBL 25 62
BP 25 60
COP 20 58.4
CVX 10 42.80
XOM 11 30.36

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.

Conclusion

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

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8 Responses to Black Friday Oil Blowout!

  1. Great time to load up on those blue chip oil names. Congrats on adding all that income to your dividend stream.

    I already have a huge portion of my portfolio in energy, so I didnt add any more.
    R2R
    Roadmap2Retire recently posted…The PEG RatioMy Profile

    • ILG says:

      Hi R2R,

      Thanks for stopping by! I am at about where I want to be portfolio wise with energy (~20%), so I am probably going to have to cool it for a while on oil. I may have to overweight oil for a little bit if the market continues to price oil companies this way.

      Otherwise, it’s time to sit on my hand with regards to oil

      Take care!

  2. DivHut says:

    I fully expect to be reading about every oil name in the coming days from all the DGI bloggers after the sell off today. Maybe some SCCO and BBL too? Or some TOT.
    DivHut recently posted…Recent Stock Purchase – November 2014My Profile

    • ILG says:

      Hi DivHut!

      Yeah, I think there is going to plenty of pickups over the next few days/weeks. It would be nice if it would last for a while longer =) I may have to reinvest dividends in my oil positions while they are depressed.

      I haven’t done much research about SCCO or TOT. SCCO may be a nice addition for diversity. While have to do some research!

      Thanks for stopping by!

  3. Liquid says:

    Congrats on the income. 😀 I already have positions in CVX and XOM, but I haven’t added any new shares to my holdings yet. I think this funk of an oil market will stay for awhile so I’m saving up to invest more heavily next year. 🙂
    Liquid recently posted…Early Financial LiteracyMy Profile

    • ILG says:

      Thanks for stopping by Liquid! I like both of those companies as well. I have a feeling we will all get a chance to buy oil stocks at attractive valuations over the next year! Today would have been a better buying day than black Friday! I am waiting patiently to add more.

      Pretty excited about it!

      Take care!

  4. Allan says:

    Oil! Oil! Oil! 🙂 I initiated a position in CVX and added to my Exxon position. My only regret is that I don’t have any money left to buy more of these great companies but I guess the sale will last for a while as the barrel price keeps dropping!

    Cheers
    Allan recently posted…How to make circle picture image with Recent Posts Widget Extended pluginMy Profile

    • ILG says:

      Yeah! I hear ya. Aside from my emergency cash I am storing up on funds so I can add to my Roth at the beginning of the year. Hopefully, I will be able to add to my oil stocks at these attractive values.

      Take care!