New values are being applied to anything "energy" at the moment.
For far too long, the market has been sitting on their hands, watching the oil price rise...and rise...and rise...all the while, expecting it to eventually come back down to the mid 20's again.
Now that oil has suddenly traded through technical levels, the market has been forced to upgraded their future outlook for oil prices....and in the process, dramatically upgrad the potential value of anything "energy" related.
This is why I fee the current "madness" in the oilers, is more a case of the market suddenly catching on to an undervalued sector...and adjusting values accordingly.
Like all market "adjustments"...I am sure it will overshoot at some point, but I think that's a long way off yet.
