Oil Prices to Test the Floor Set by OPEC's Put

Oil prices have run higher this week on rumblings around OPEC and the potential for production cuts between it and Russia. In recent reports, I proposed an OPEC put was in place as a result, setting a floor for oil prices. But as this story fades and is questioned, I expect the firmness of this floor to be tested. Oil prices should fall toward $30 again and likely breach it as market confidence in action wanes. At $30, I expect rhetoric to pick up pace again, and by $25, emergency action on production cuts to occur. See the full report on oil prices testing the OPEC put.

Energy Relative Issues	Week-to-Date (thru 11:40 AM Friday)
SPDR S&P 500 (NYSE: SPY)	+0.3%
iPath S&P GSCI Crude Oil (NYSE: OIL)	+2.7%
United States Oil (NYSE: USO)	+1.3%
Energy Select Sector SPDR (NYSE: XLE)	+1.5%
SPDR S&P Oil & Gas E&P (NYSE: XOP)	+3.1%
Market Vectors Oil Services (NYSE: OIH)	+3.6%
Exxon Mobil (NYSE: XOM)	-0.2%
BP p.l.c. (NYSE: BP)	+4.8%
EOG Resources (NYSE: EOG)	+5.7%
Baker Hughes (NYSE: BHI)	+3.4%

DISCLOSURE: Kaminis is short USO. Please see our disclosures at the Wall Street Greek website and author bio pages found there. This article and website in no way offers or represents financial or investment advice. Information is provided for entertainment purposes only. Article interests energy investors including Exxon Mobil (NYSE: XOM), BP (NYSE: BP), PetroChina (NYSE: PTR), Petrobras (NYSE: PZE), Royal Dutch Shell (OTC: RYDAF.PK), Total (NYSE: TOT), Chevron (NYSE: CVX), Repsol (OTC: REPYY.PK), ConocoPhillips (NYSE: COP), Eni SpA (NYSE: E), Sasol (NYSE: SSL), Encana (NYSE: ECA), Suncor (NYSE: SU), Imperial Oil (AMEX: IMO), Statoil (NYSE: STO), Cenovus (NYSE: CVE), Transocean (NYSE: RIG), Penn West Petroleum (NYSE: PWE), Continental Resources (NYSE: CLR), Noble (NYSE: NE), Concho (NYSE: CXO), Diamond Offshore (NYSE: DO), Ensco (NYSE: ESV), Whiting Petroleum (NYSE: WLL), Nabors (NYSE: NBR), Pride International (NYSE: PDE), Helmerich & Payne (NYSE: HP), QEP Resources (NYSE: QEP), Enerplus (NYSE: ERF), Rowan (NYSE: RDC), Cobalt (NYSE: CIE), Patterson UTI (Nasdaq: PTEN), SandRidge (NYSE: SD), Schlumberger (NYSE: SLB), Halliburton (NYSE: HAL), National Oilwell Varco (NYSE: NOV), Baker Hughes (NYSE: BHI), Weatherford International (NYSE: WFT), Cameron (NYSE: CAM), FMC Tech (NYSE: FTI), Oil States International (NYSE: OIS), Superior Energy (NYSE: SPN), Carbo Ceramics (NYSE: CRR), Helix Energy (NYSE: HLX), Pioneer (NYSE: PXD), CNOOC (NYSE: CEO), China Petroleum and Chemical (NYSE: SNP), Ecopetrol (NYSE: EC), Canadian Natural Resources (NYSE: CNQ), Apache (NYSE: APA), Anadarko (NYSE: APC), Devon (NYSE: DVN), EOG (NYSE: EOG), Chesapeake (NYSE: CHK).