As Rig Counts Rise, So May Saudi Arabia

The latest weekly rig count data produced by Baker Hughes (NYSE: BHI) showed the third straight increase in active North American drilling rigs. The relatively higher price of oil has producers in both the U.S. and Canada expanding operations in June. But that is precisely what Saudi Arabia has been suffering to stop, and so increased investment activity could lead Saudi Arabia to boost production soon. The ripples of such an action might be big, but only if other energy sector dynamics matter less. See this full report at The Snake Also Rises - Saudi Arabia's Response to Rising Rig Counts.

Energy Relative Shares	Week Ended 06-17-16
SPDR S&P 500 (NYSE: SPY)	-1.7%*
United States Oil (NYSE: USO)	-1.8%
iPath S&P GSCI Crude Oil (NYSE: OIL)	-2.5%
United States Natural Gas (NYSE: UNG)	+2.4%
Energy Select Sector SPDR (NYSE: XLE)	-0.0%*
SPDR S&P Oil & Gas E&P (NYSE: XOP)	-0.3%*
Market Vectors Oil Services (NYSE: OIH)	-0.6%
Exxon Mobil (NYSE: XOM)	+0.8%
Chevron (NYSE: CVX)	-0.4%
B.P. (NYSE: BP)	+1.6%
ConocoPhillips (NYSE: COP)	-0.8%
Phillips 66 (NYSE: PSX)	-1.9%
Occidental Petroleum (NYSE: OXY)	-0.7%
Schlumberger (NYSE: SLB)	-1.3%
Halliburton (NYSE: HAL)	-0.6%
Chesapeake Energy (NYSE: CHK)	+2.0%
Pioneer Natural Resources (NYSE: PXD)	-3.2%

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).

Oil Prices in a Tug-of-War

Oil prices are locked in a tug-of-war, with two powerful opposing forces pulling on it. This should bring about swings in the price of oil as one factor overpowers the other and vice versa. However, it should also allow for an ironic stability for as long as neither convincingly overpowers the other. On one side, we have an appreciating dollar pulling oil downward, and on the other we have a change in energy sector dynamics pulling oil higher. Traders might use the sort of controlled volatility to their advantage, while long-term investors may be frustrated near-term. See the whole story at The Tug-of-War for Oil Prices.

Energy Relative Shares	Year-to-Date
SPDR S&P 500 (NYSE: SPY)	+3.7%
United States Oil (NYSE: USO)	+8.9%
iPath S&P GSCI Crude Oil (NYSE: OIL)	+4.7%
United States Natural Gas (NYSE: UNG)	-25%
Energy Select Sector SPDR (NYSE: XLE)	+12.1%
SPDR S&P Oil & Gas E&P (NYSE: XOP)	+16.7%
Market Vectors Oil Services (NYSE: OIH)	+6.4%
Exxon Mobil (NYSE: XOM)	+17.5%
Chevron (NYSE: CVX)	+16.1%
B.P. (NYSE: BP)	+7.4%
TOTAL S.A. (NYSE: TOT)	+10.6%
ConocoPhillips (NYSE: COP)	-3.8%
Phillips 66 (NYSE: PSX)	+0.1%
Occidental Petroleum (NYSE: OXY)	+13.8%
Schlumberger (NYSE: SLB)	+12.2%
Halliburton (NYSE: HAL)	+26%

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).

Sell Oil & Gas Exploration & Production - Take Risk off the Fringe of Energy

In my recent report, Why Energy is in Serious Danger Again, I suggested investors in the energy sector prepare for another significant downturn near-term. That is especially true for investors at the fringe of risk, in energy exploration and production firms. So, I suggest investors with recent paper gains in the SPDR Oil & Gas Exploration & Production ETF (NYSE: XOP) take profits here. I believe the security could retest February lows near-term on the same fundamental catalysts that I see pressuring oil. See more on why I say sell the Oil & Gas E&Ps here.

Top 10 Holdings of XOP ETF	Gain Since February 24 Close
Cabot Oil & Gas (NYSE: COG)	11.5%
Antero Resources (NYSE: AR)	2.7%
Gulfport Energy (Nasdaq: GPOR)	4.7%
EQT Corporation (NYSE: EQT)	12.9%
Exxon Mobil (NYSE: XOM)	3.0%
Range Resources (NYSE: RRC)	31.6%
Occidental Petroleum (NYSE: OXY)	-0.3%
Parsley Energy (NYSE: PE)	31.8%
Southwestern Energy (NYSE: SWN)	8.1%
Chevron (NYSE: CVX)	11.2%

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).