Oil is in an intense bear market. The price for U.S. West Texas Intermediate Crude hit $29.93 per barrel recently due to concern about lowered demand from China and the ongoing supply glut. "...Standard Chartered said fund selling may not relent until it reaches $10." This has affected the oil sector, OPEC and the oil producing countries and the prices of certain investment products such as MLPs and High Yield bonds.
Energy companies such as Exxon Mobil and Royal Dutch Petroleum have seen their stock prices slide. The sector has been down 9% in the last 9 days of trading. Others are cutting capital expenditures and workers.
Countries affected negatively by the price slump are Russia, Saudi Arabia and the OPEC nations and shale oil dependent states in the U.S. These include Alaska, North Dakota, Oklahoma, Louisiana and New Mexico.
As always, there are some buyers trying to catch a falling knife. Gary Bradshow, portfolio manager of Hodges Small Cap Fund, is buying natural gas firms in the belief that oil will rally to $55 per barrel.
The source for this article can be accessed here.
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