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WTI crude had a big down day this week, and I’m leaning towards the bearish camp on oil and the sector in general. Our exploration and extraction technology has just improved so much that we may see oil stay subdued for a long time. Also, Exxon Mobil Corporation (NYSE:XOM) made a new 52-week low this week, and that’s not a good sign.
Until XOM turns around, I think oil is really going to be stagnant at these levels and move lower. Many of the producers are still able to turn a profit at current prices, which means they’ll keep their rigs up and running, and that’s going to continue to put pressure on the oil market.
To take advantage of this, today I’m recommending Crescent Point Energy Corporation (NYSE:CPG) puts.
Buy to open the CPG Jul 10 Puts (CPG170721P00010000) at $0.80 or lower.
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