The Market Today -- The Oil Move -- February 10, 2023

Updates

Later, 6:45 p.m. PST: this is a nice link to quickly check prices. 

Later, 2:00 p.m. PST: the market is closed; the "oils" held -- no last-minute profit-taking (at least of those I checked) which really, really surprised me. WTI came very, very close to $80. 

Apparently global oil demand is being driven by demand for jet fuel. If so, it's hard to believe we don't see prices a lot higher than $80. But I digress. 

Most surprising today. My twitter feed is almost completely energy, and in that arena, almost all oil, some natural gas. Scrolling through my twitter feed just now, and I see no one talking about oil today.

What are they talking about on "Fast Money" -- the first CNBC show after the market close? They're talking retail sector, the risk of recession, and semi-conductors. 

Oh, finally, they're talking about energy, specifically oil. It's almost as if no one is paying attention.  

The final word from one of the panelists: " I would not chase these stocks at this multiple (P/E)."

• MPC with a P/E of 5.56
• CVX with a P/E of 9.41.
• SRE with a P/E of 22.1 and showing "red" over the past six months; absolutely flat since March, 2022. And SRE jumped $4.37 (2.86%) today.
  

Time to turn that craziness off. 

Original Post 

Is anyone paying attention? Link here.

Market:

• CVX: up $3.74; up 2.22%;
• COP: up $5.02; up 4.57%;
• PSX: up $4.95; up 4.88%;
• MPC: up $6.02; up 4.94%; 

There are several things going on. 

The two most important things today:

• sector rotation (some folks are finally getting the message) -- see the link above -- is anyone paying attention?
• the Russian announcement.

But having said that, this move today, so far, is much more than most expected. Is it unprecedented? Probably not, but someone much smarter than I with a better grasp of history will have to provide the perspective.

WTI is getting awful close to $80.

If oil companies can make record profits with $60-oil, imagine what they can do with $80-oil. And, remember, we're in a recession. A year from now, or at worse, two years from now, we should be coming out of this crippling recession.

Hopefully we're not in a shooting war with China before then (or ever, for that matter) -- as I'm writing this, it's being reported that Biden shot down a UFO over the state of Alaska.

Time to move on, but much more could be said.