Opinion: The S&P 500’s charts are pointing to more stock-market losses
This past week, the S&P 500 index plunged to new relative lows. It is now trading at prices last...
This past week, the S&P 500 index plunged to new relative lows. It is now trading at prices last seen in March 2021. This latest move downward violated support at 4100-4200 and prompted a swift move down toward possible support at 3900. The next support area below that is 3700 – the lows of February and March 2021.
The S&P SPX, 0.10% is quite oversold, although as readers know, “oversold does not mean buy.” Even so, oversold rallies accompany bear markets. They usually top out at about the level of the declining 20-day moving average or perhaps slightly above that.
The bulls have tried to engineer a couple of oversold rallies of late, but they turned out to be one-day affairs that – while looking spectacular for one day – had no staying power.
🔥From Twitter: Josh Brown from CNBC - "Yes, we are in a Bear Market"
"I've been talking about this being...
"I've been talking about this being a bear market since February," says @downtown. "Here we are in the middle of May, the damage is way worse than anything we saw in 2018...until everyone can agree, 'hey this is the real thing,' I don't see how we bottom." pic.twitter.com/TGJ2JqPtZ7
⛽️Gas prices are hitting record highs even though crude oil has dropped
Given that 59% of gas prices come from the cost of crude, a 22% decline in oil should've translated...
Given that 59% of gas prices come from the cost of crude, a 22% decline in oil should've translated to a 13% dip at the pump — but that didn't happen. On Wednesday, the average gallon of gas in the US hit $4.40, according to AAA. Meanwhile, the cost of West Texas Intermediate crude surged in March to $123 a barrel, the highest since 2014, but has since fallen back to around $106.
This disconnect stems not from the crude oil market, but instead reflects frictions in the gasoline market, wrote senior economist Garrett Golding and senior economic policy advisor Lutz Kilian of the Dallas Fed.
US Scraps Three Offshore Oil and Gas Drilling Auctions
The Biden administration on May 11 said it would scrap three planned sales of offshore oil and...
The Biden administration on May 11 said it would scrap three planned sales of offshore oil and gas leases in Alaska and the Gulf of Mexico.
In a statement, the Department of Interior said it was not moving forward with an auction for drilling rights in the Cook Inlet off the coast of Alaska “due to lack of industry interest in leasing in the area.”
It also said two sales in the Gulf of Mexico would be canceled due to “conflicting court rulings.”
Occidental CEO Says More Oil Production Would Hurt Shareholders
Oil companies worldwide have been trying to increase production, but are struggling to...
Oil companies worldwide have been trying to increase production, but are struggling to balance increases without undercutting shareholder returns, Occidental Petroleum CEO Vicki Hollub said on May 11.
The U.S. oil producer, which plans to resume repurchasing its shares this quarter to reward investors, could boost output by as much as 5% next year if returns stay high. But rising service and material costs have limited what companies can do to quickly address the oil supply.
The company increased its CAPEX by $250 million mostly to cover inflation costs, she said. It also gave up on a multi-rig program for its Colorado operations after having its drilling permits restricted to one unit by regulators for the remainder of 2022, she said.
Occidental will resume its share repurchase program this quarter after reaching its $20 billion net debt target, CFO Robert Peterson said during the call. The producer had previously disclosed plans to use $3 billion for buybacks.
