UK 07:04 Tuesday, 6 October 2026
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Disclosure: I own shares in one or more of the stocks mentioned. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.
Given how oil stocks have been slaughtered recently it might seem as bit silly to even be considering buying any. Especially when some commentators are forecasting Armageddon with oil prices slipping even lower to previously unimaginable levels – I’ve even seen mention of $40 per barrel being seen!
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Comments
wildrides
last time oil was at $70 dollar Gold was at $600 level . Oil was at $40 dollar in late 2004 ………….. thats 10 years ago . I cant see it ever getting that low . Extraction costs will have just about doubled since then . You may as well say its going back to 1999 at $11 dollar …………… it just aint gonna happen because of currrent variable and fixed costs .There is so much shite talked out there in the ether . I cant see it going much lower when you look at variable and fixed cost inflation in the last decade.
Gary Newman
Tend to agree and have been happy to at least put some money back into oil shares and view it as a good opportunity. Interesting to see that the number of shale oil licences being applied for seems to be falling as well. I also wonder how much oil in total has been hedged at higher levels and if oil was to stay low what sort of knock-on effect that might have (sure everyone is keen to avoid another sub-prime type scenario). As always seems to be the case on any drop, some always make predictions excessively to the low side – was the same when the FTSE100 dipped below 5000 in 2011, with all sorts of lower targets! Will be interesting to see if Osborne sticks to his word over reconsidering taxes if oil dropped below $75.
Paul Curtis
Agreed, I bought as well.
Think fall down to momentum traders since ENQ so geared to oil price. Analyst NAV’s indicate negative NAV at flat low oil price but this is irrational. The killer is low oil price in 2016 when hedging expires and high cost Kraken kicking in in 2017.
Perversely current oil crisis is the best possible news for Enquest since makes likelihood of higher oil price when it really matters more likely.
And heavy director buying reassuring
Gary Newman
Paul, I’ve traded it today as rise was crazy and too much to ignore on CFDs, but one of my favourites longer term and for 2015 onwards. I’ll continue to take advantage of the short term volatility as it will give me more shares in there overall for when it does recover properly. If you can’t watch the markets all day then yesterday was a great price to just buy and hold (I try and base my pieces on investors not traders, even though i do both myself, as I understand that most don’t have the time or inclination to watch intra-day movements and just want something good value to buy and hold longer term). ATB