New Regulation affecting junior oil stocks?

[bigminty]

***CFTC regulations bearish for crude prices, junior explorers and producers

A proposed regulatory change could affect the junior oil exploration and productions stocks . Earlier this week the U.S. Commodities Futures Trading Commission (CFTC) revealed that is thinking about new regulations that limit positions sizes on commodities contracts. The agency says it wants to reduce "excessive speculation" in the commodity markets, especially the oil market. The agency will hold hearings in August.

After peaking at $73.90 in mid-June, front-month crude futures dipped below $60 earlier this week. I'd suggest the CFTC going after what it calls oil speculators may have something to do with this. It's also possible, of course, that renewed negativity about the economy is also the sort of thing that's going to lead to lower prices.

Whichever the case, keep your eyes on the crude price. If the oil price corrects further to $50 or lower, it's going to bad for junior oil stocks. The best strategy would be to set trailing stops in your oil stocks, sell the positions should those stops be triggered, and re-enter the positions later, after the oil price bottoms out.
........From 'diggers and drillers"(tipsheet)

[AMR]

You know what they say about regulations...they always have an unintended side effect.

Hard to tell what will happen, if you remember back a few months ago while the markets were tanking most countries banned shortselling...the market still crashed.

[shasta]

***CFTC regulations bearish for crude prices, junior explorers and producers

A proposed regulatory change could affect the junior oil exploration and productions stocks . Earlier this week the U.S. Commodities Futures Trading Commission (CFTC) revealed that is thinking about new regulations that limit positions sizes on commodities contracts. The agency says it wants to reduce "excessive speculation" in the commodity markets, especially the oil market. The agency will hold hearings in August.

After peaking at $73.90 in mid-June, front-month crude futures dipped below $60 earlier this week. I'd suggest the CFTC going after what it calls oil speculators may have something to do with this. It's also possible, of course, that renewed negativity about the economy is also the sort of thing that's going to lead to lower prices.

Whichever the case, keep your eyes on the crude price. If the oil price corrects further to $50 or lower, it's going to bad for junior oil stocks. The best strategy would be to set trailing stops in your oil stocks, sell the positions should those stops be triggered, and re-enter the positions later, after the oil price bottoms out.
........From 'diggers and drillers"(tipsheet)

Your taking the piss surely?

There is only one sector to be in & that's ENERGY.

Oil may drop below $US60 briefly, & that's all it will be...

Mid term Oil is heading much higher.

I'd be surprised if Oil was under $US70/bbl* come 31 Dec 09

*WTI/Brent (Tapis price say ~$US75/bbl)

Oil needs to stay around $70 - $80/bbl to make exploration viable & for OPEC to supply enough.

Under $US60/bbl & OPEC will cut off supply, what we need to do is ensure the oil price doesn't surge well over $US100/bbl again too soon.

If the US regulators feel they need to intervene/interfere with the markets perhaps they should look at:

1. Banning short selling
2. Reviewing/Removal of derivatives
3. Coming up with better disclosure requirements for off balance sheet transactions & related party transactions.

[Dr_Who]

It is not the mun and dads they should be concern about. It is the big hedge funds and investment banks with the billions that does all the manipulating. If there are any restrictions, it should be for the hedge funds and investment banks.

[Valuegrowth]

http://www.bnn.ca/News/2014/12/8/Kev...il-stocks.aspx

Kevin O’Leary predicts pain for junior oil stocks