Why do Driller stocks move with the daily price of oil?

[MJL + 17]

If the Drillers can be profitable at $50.00 brl, then shouldn't the stock price stay steadier day to day as long as oil remains above $60.

 

[Rodent + 1,424]

On 3/13/2018 at 9:25 AM, MJL said:

If the Drillers can be profitable at $50.00 brl, then shouldn't the stock price stay steadier day to day as long as oil remains above $60.

 

I think there are people on here more knowledgeable on here than I about this particular thing. But from my perspective, it seems more complex than just barrel prices remaining below driller breakevens--although clearly that's a biggie. But how far below breakeven? Some are more profitable than others. As DUCs are put into service (and earning), or rigs are idl d, costs change and breakevens change. Stock prices largely move on sentiment as well--this is where the big swings will factor in. Talk about steel tariffs, US exports, refining capacity utilization, etc. all factor in. 

But like I said, I'm sure there are others infinitely more qualified to answer this question.

[Rodent + 1,424]

There are some interesting insights here too.

https://oilprice.com/Energy/Crude-Oil/US-Shale-Drillers-To-Become-Profitable-For-The-First-Time.html

 

[Marina Schwarz + 1,576]

Not all drillers can be profitable at $50, that's a common misconception. Many need higher oil prices, and a minority can turn in a profit even below $50. Then there are speculators, of course. Daytrading is getting increasingly popular as a way to make a buck and they don't care how they swing the market, all these millions of hopefuls.

[MJL + 17]

Thanks for your responses. I'm new to oil investing. And I'm reading so much about this being a breakout year and possibly 3-4 year move.  I have started positions in NBR, PES & CPG. Has anyone else looked at these companies?

Thanks again,

Mike

[Rodent + 1,424]

4 hours ago, MJL said:

Thanks for your responses. I'm new to oil investing. And I'm reading so much about this being a breakout year and possibly 3-4 year move.  I have started positions in NBR, PES & CPG. Has anyone else looked at these companies?

Thanks again,

Mike

@TraderTate, are you into any of the above stocks? 

[MJL + 17]

Yes,all 3.