Oil has likely found a bottom. Although possible for prices to move lower, the odds favor higher prices over the next year. The following demonstrates the dramatic decline in rig counts:
The rig count will likely further decline. A number of reports are starting to surface concerning the bankruptcy of many small oil companies. Should this happen, it may be a good time to buy high quality energy companies.
One company that I am following is Atwood Oceanics (ATW). ATW is a high quality drilling and exploration company. I have initiated a position in ATW.
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