Oil prices have plunged to 4-year lows but there may be hope in the short term for oil and gas stocks. As a recent article from the Wall St. Journal cites, "frenzied buying and selling on Monday saw prices plunge to multiyear lows and then rebound." This morning, prices remain volatile with Brent dropping below $72 a barrel and ICE Futures Europe saw January deliver down $0.52 at $72.01. Overall, oil prices are down about 35% from the peak in mid-June.
Despite these record lows, many analysts including myself believe that there will still be hope for oil and gas related stocks. Even after this heavy selling subsides, the market will need a correction and positive momentum from "buying at the lows" should see oil rise so a happy medium. Though it probably won't go back to $100 per barrel any time soon simply due to the global surplus and increased inventories, shrewd investors no doubt will be looking for these exact bottom levels in order to take advantage of undervalued share prices before the market correction.
OriginOil, Inc (OTCPK:OOIL) is an oil and gas related company through its patented EWS frack water remediation system. During the quarter not only was the Company granted an international patent in China for its technology but OriginOil's EWS has recently caught the attention of AlJazeera America and was featured on the series TechKnow.
Recently the stock price for OOIL has fallen victim to that of the Oil market as a whole. Following a strong start last week, prices slumped to 52-week lows during Monday's trading session. As with many related stocks, speculators are looking for bottom "bargains" and for OOIL, a 52-week low could be "just what the doctor ordered and places this small cap at the top of today's watchlist.
Halliburton Co. (NYSE:HAL) has also fallen victim to the recent slump. During Monday's trading session, the stock dropped to levels it hasn't seen since the summer of 2013. Recently the Company announced its acquisition of Baker Hughes (NYSE: BHI) in a stock and cash deal valued at $34.6 Billion. Several analysts believe this deal will go through based on several key factors including management approval on both sides, Halliburton is taking on anti-trust risk in accepting to pay a breakup fee of $3.5B, and the cost synergies valued at $2B could create significant operating margins for the combined company.
Technip SA (TKPPY) was recently awarded an important subse contract by Statoil at the Gullfaks Field in Norway. The Gullfaks Rimfaksdalen (GRD) Marine OperationsPipelay and Subsea Installation project consists of a subsea tie-back to a new Wye piece on an existing pipeline close to the Gullfaks A platform. The GRD template will be located 190 kilometers Northwest of Bergen, Norway.
Despite these latest developments, Technip stock has slipped to all time lows as of the Post Black Friday week. During trading on Monday, the stock plunged to lows of $16.21 but remained thinly traded. This foreign stock trades on the Paris exchange under the symbol TEC.PA.
So as the market pulls back, investors in oil and gas may be able to find some incredible bargains and potentially low entry points amidst the recent slump in Oil and Gas. In my opinion, the lows are only bad if you were in at a higher price so for me, this drop is open season for new investment opportunities.