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.

Oil Collapse Leads to Market Plunge

By Mark Howitt

8 January 2015 00:39

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It’s not been a pretty period for the oil price. On Monday (Monday 5 January) ICE Brent Crude Oil fell by a whopping 5.95% to just over 53 dollars a barrel. On Tuesday (Tuesday 6 January) it was down a further 1.05% to 52.50 dollars a barrel. The slide continued yesterday.

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Comments

Jane

8 January 2015, 01:04

Mark, I’m puzzled by the PER you quote for BP of 4.8. Stockopedia is showing 9.0 for 2014 and 10.5 for 2015. Is there some factor missing in the Stockopedia figures?
wildrides

8 January 2015, 01:29

Your wrong about the economics of production ……….. many producers can still break even at and just below $40 dollars a barrel , except the horizontal drillers and frackers. Its the countries with national oil production that cant hack it because of their GDP budgets and spending commitments.
Mark Howitt

11 January 2015, 21:04

I have had a look at worldwide production and yes some places are below 40 dollars a barrel. Plenty aren’t though, and even the OPEC countries need a higher price than this in the long run. I’ve been reading quite a lot about oil lately and the interesting thing is ‘crashes’ in the price such as this often lead to spikes afterwards. For long term investors it’s a good idea to keep oil stocks on your watchlist now.