Coat of arms of Libya -- the "Hawk of Qur...Image via Wikipedia

The crises in Libya appears to be accelerating. It appears that the central government has lost control of several regions of the country.

Marathon Oil (MRO) owns 16.33% of the Waha concessions in Libya. We continue to be positive on Marathon in anticipation of its up coming split into two companies. If the stock gets hit, we will use any big down spike to initiate a long position.

More than one-fourth of Occidental Petroleum’s (OXY) worldwide oil and gas production comes from the Middle East/North Africa region, where the company has been an active investor for more than four decades.Occidental was the first American company to resume operations in Libya when U.S. sanctions were lifted in 2005. Occidental has major operations in  the Sirte Basin. We will lightly start scaling in short position on Occidental if we can enter such short at a price not too far from Friday’s close.

In these positions, we will strictly follow the risk control discipline imposed by the ZYX Change Method.

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