Stocks for the Coming Crude-Oil Glut
Refining continues to be the hottest ticket in energy. And despite my hesitancy to buy highflying stocks, some secondary plays continue to represent value and are worthy of continued support or even new positions if you're not in the refining space yet.
I talk all the time about the differential between West Texas Intermediate and Brent crude, because that spread very succinctly outlines the margins that refiners in the mid-continent can capture, and therefore their profitability. If you look out on the curve of that spread, you see a very rapid narrowing of differentials going through 2013 and into 2014. That would indicate that at least some of the refining stocks are well overpriced here and are "cruisin' for a bruisin'" sometime later this year....442 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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