Oil Services Stocks Are Lagging Crude
Crude oil has been surging higher as of late. On December 16, 2011 light sweet crude was trading as low as $92.52 a share. A few days ago crude traded near $110.00 a barrel. This morning, the highly followed and traded United States Oil Fund (NYSEARCA:USO) is trading higher by 0.30 cents to $41.22 share. Oil remains in a very strong uptrend on the daily charts at this time.
It is important to note that the Oil Service Holders Trust (NYSEARCA:OIH) is lagging the price of crude. The OIH is still trading below it's October 27, 2011 high which was $45.30 a share. Normally, when oil is so strong most investors would want to own the oil service stocks, however, every chart has its own cycle. Short term traders can watch for intra-day resistance on the OIH around the $44.00 area. Some leading oil service stocks that could be susceptible to declines in the near term are Halliburton Co (NYSE:HAL), Baker Hughes Inc (NYSE:BHI), and Transocean Ltd (NYSE:RIG).