Newspaper article THE JOURNAL RECORD

Oil Market Self-Corrects, Oklahoma State Stocks Make Comeback

Newspaper article THE JOURNAL RECORD

Oil Market Self-Corrects, Oklahoma State Stocks Make Comeback

Article excerpt

Markets made a correction Tuesday, according to local energy industry insiders.

Experts have claimed the price of crude oil is much too high, and over the past two days it has headed in the reverse direction.

"We had an awful lot of forward trading that indicated people were convinced that oil was going to keep going up, up and up, and this is a fairly strong correction," said Bruce Bell, chairman emeritus of Mid-Continent Oil & Gas Association of Oklahoma. "Hopefully we'll knock some of the speculators out of the equation and we'll get more reasonable oil prices."

Oil dropped another $5.33 and settled at $136.04 per barrel, a day after losing $3.92 per barrel. For the week, the commodity is down $9.25.

State oil and gas stocks dropped sharply early in the day but most made up a great deal of ground by the end of the session.

Bob Rader, senior vice president of Capital West Securities, said the stock market responded to the commodities exchange.

"What had happened is that so many of these energy stocks over the last month have been almost at a vertical climb, and it got to the point that with oil starting to come down in price, there was some profit-taking by traders," Rader said. "The stocks took a pretty good hit this morning."

Continental Resources was down nearly 12 percent in the early going but closed with a rush and finished at $63.36, down 23 cents, or 0.35 percent.

Panhandle Oil & Gas, which closed at $32.22, up 10 cents, or 0.31 percent, and Quest Resources, which closed at $10.15, up 22 cents, or 2.22 percent, ultimately were winners on the day among state oil and gas stocks. For most stocks, what started as a bad day turned better.

Bell said energy is at a point where some of the movement seen Tuesday will become more regular.

"I think you're going to see some of the top move off and obviously the prices of our local oil and gas businesses are going to moderate somewhat," Bell said. …

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