A little over a month ago, I wrote about why I thought oil and oil stocks were a short in “5 Reasons Why It’s Finally The Time To Sell Big Oil”. The fundamentals, technicals, and implied volatility were all getting to extremes. Probabilities favored a pullback.
Now that oil and oils stocks have fallen over 15% in the past 30 days, my opinion has changed as well. Price does matter. My prior bearish outlook has turned to a more neutral to slightly bullish viewpoint. Let’s look at three reasons why the worst may be over for the recent carnage in crude. Once again, I will be using ExxonMobil (XOM) as the poster child for Big Oil.
