Seadrill Ltd (SDRL)

[ogbull]

SDRL... best buy at these numbers.

Think about this: It makes no sense for anyone to pump crude out of the ground when all the storage space is filled. If they continue to pump with no place to sell, they will be committing financial suicide. I think we will see production drop drastically in the new few weeks, long before the price drops much lower than it is now.

I also think that a big oil trader or two has some inside info on Congress approving crude exports.

We might even see an emergency OPEC meeting in which they agree to cut. OPEC does not want the US to lift the export ban on crude. If they do not cut production, the chances are 70/30 that Congress will allow crude exports. OPEC knowns this. I think they will back down and crude will bounce up $5. If not, Congress will approve exports and WTI will still bounce up $5. If this happens, we will catch 2-3 million shorts in a squeeze and SDRL could move up to $15-$16 share and maybe higher in a quick hurry.

I also think the selling Friday was way overdone.... now is the time to bet the farm!