New York Global Securities Bullish on Oil Stocks and Oil Futures
In a research note today from New York Global Securities, analyst Philip Miller said they are recommending the accumulation of oil stocks and oil futures because they believe that following the U.S. midterm elections the price of oil is likely to test the tolerance of the market and the new members of Congress.
Miller said, "We believe that the last three major declines in the price of oil coincided with various U.S. Senatorial hearings and expectations surrounding the upcoming U.S. midterm elections. We further believe that these events may have caused speculators within the oil markets to become cautious, resulting in a drop of more than 20% in the price of oil. With regard to the two prior declines, once the Senate hearings were over and the Senate did not take any significant action, the price of oil began to increase. We expect that following the current U.S. elections the price of oil will again rise testing the tolerance of the new Congress."
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