With oil dropping pretty dramatically lately, anyone thinking about investing in energy stocks or an energy index soon? I don't know what I'm doing when it comes to investing so I've just kept everything as cash, but if oil drops to $40-$45 I'd think that would be a good time to put my McDonalds retirement fund of $7.67 in and go long.
Anyone Thinking of Investing in Oil?
- Thread starter Djshorty89
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not yet, it will drop at least 20 to 25% unless someone blows something up. Watch out for PUTIN. The west want to punish Russia or box it into a corner.
The Saudis want to kill the American oil boom. If you have investments in the shale oil boom states you should consider selling now.
At a certain price level most of those FRACKING oil setups will all start going out of business, and that might be a time to consider buying.
You should be investing in food production and surviving outside of the GRID, if you know what I mean!
Is pressure on russia the reason for the low oil prices? It makes sense, and the timing is perfect with the holiday shopping season.
Nothing to do with Russia. US increased production massively over the past while, and OPEC didn't cut production. We have lots of oil now.
i'm pretty sure ISIS selling at 80% discount has something to do with pushing the price down. Also I mean they seized all that inventory, and have no other source of income, yet even if they sell it at 99% less than market, they'll have enough for years.
can't be the only one who thinks they are kind of a big variable in the dwindling prices right now?
can't be the only one who thinks they are kind of a big variable in the dwindling prices right now?
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Nothing to do with Russia. US increased production massively over the past while, and OPEC didn't cut production. We have lots of oil now.
^^^This. There's definitely some profit to be made in the long-term by purchasing oil now, but keep in mind that it was massively overpriced due to hedge fund speculation. We also have a massive oversupply at the moment. Prices should stabilize soon, but I doubt we're going to see $110+ for a while.
I guess I should probably ask either of my brothers or my dad, but it doesn't look like the over supply is going to stop any time soon, does it? Well, unless OPEC does a 180, but that's not going to happen.
I know Alberta tar sands are ramping up expansions to no end, we have Keystrone on the table which will eventually be approved -- not a matter of if, but when. Then the US is going through a huge shale boom, Western Canada is ramping up as well, there's another pipeline from I think Yukon down to (eventually) US markets that I think was just recently approved, and more.
Doesn't look like we're going to begin running low any time soon, that's for sure. Maybe I'm wrong though. Would have to ask my family, as they're the oil guys.
Nothing to do with Russia. US increased production massively over the past while, and OPEC didn't cut production. We have lots of oil now.
But that doesn't answer the question about of why? US foreign policy and oil are one in the same. I'm not saying that Russia is related, but I could imagine it might be hard to prove that it's not. With that said the idea never crossed my mind before reading this thread.
Either way. The increased production still doesn't make much sense. It's not like they can't figure out te price forecast.
Edit: just saw your last post. Are you suggesting ambition is te reason for the surplus?
^^ You mean US is planning for a large-scale war (potentially with Russia), hence the latest production boom? Who knows, maybe that's right. Current oil prices have sweet fuck all to do with Russia though. Whether or not US opened up land, and pushed production in anticipation of a larger war is another matter, and you could be right on that.
I don't know shit about it but it certainly seems plausible from a common sense stand point. Who'd admit it though without giving all kinds of attention to the bad guys. I doubt we'll ever see numbers transparent enough to show it but the whole pricing system is pretty symbiotic even without turrists in the mix.
1 - The amount they produce is an incredibly small percentage of world markets.
2 - They still have costs, as well as the risk the black market take on, the price can't be dropped that much.
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The big players are doubling down, but they have money to begin with. The high cost producers will go out of business, and I would assume that the industry will consolidate even more, meaning enjoy short term low prices, because they'll always go back up.
The big players are doubling down, but they have money to begin with. The high cost producers will go out of business, and I would assume that the industry will consolidate even more, meaning enjoy short term low prices, because they'll always go back up.
No it means our smarty pants foreign relations strategists think that depressing the price of oil will devastate the Russia economy and stink Vladimir Putin. The crude collapse of 84-89 is now widely believed to have presaged the fall of the USSR. The Russian economy depend on oil exports.
However, this moment in time our smarty pants strategists are on a massive run of boneheaded moves so I expect this will blow up in our faces, and badly at that. Deflation threat is real!
The whole game was more fun in the 50s-80s when we were the Good Guys.
Related to the OP: I am underwater in some Frakking related stocks and I am not sure how I am going to play it. I might capitulate on Monday because I do think there is a chance at another leg down. However the stocks I own pay a strong dividend and I am looking a nice yield to try to wait it out. But, of course, if the bloodbath in crude $ continues I expect dividends to be slashed or suspended entirely.
I walked into this a little bit so I am pissed at myself. I raised some cash last week and shorted some high yield junk which is up but not enough to offset what is happening in oil.
I am not sure what I want to do about my long oil positions. I am not considering putting new money to work though. If I wasn't underwater I might consider buying like with 1/3 of capital here. The thing about oil is a lot of crazy stakeholders and when shit goes down the price spikes back up so it's hard to imagine a volatility scenario that gets SCARY bad where OIL also remains depressed.
On the flipside, the fracking stuff is in trouble because of funding is drying up and it's not a consolidated industry at all. Bunch of cowboys out west, Dakotas and Texas and not as many deep pockets as people might imagine. The loans are drying up and are probably already dry.
I walked into this a little bit so I am pissed at myself. I raised some cash last week and shorted some high yield junk which is up but not enough to offset what is happening in oil.
I am not sure what I want to do about my long oil positions. I am not considering putting new money to work though. If I wasn't underwater I might consider buying like with 1/3 of capital here. The thing about oil is a lot of crazy stakeholders and when shit goes down the price spikes back up so it's hard to imagine a volatility scenario that gets SCARY bad where OIL also remains depressed.
On the flipside, the fracking stuff is in trouble because of funding is drying up and it's not a consolidated industry at all. Bunch of cowboys out west, Dakotas and Texas and not as many deep pockets as people might imagine. The loans are drying up and are probably already dry.
something something derivatives. your mileage may vary. market volatility. grains of salt. that will be $20,000 for financial advice.
could it be then that opec & iran is trying to starve them out with continuing to oversupply the market and driving prices down?
i have a few oil related stocks mainly just drillers for dividends and through the hit they are taking have been looking quite a lot into oil prices lately.
lots of stuff has been going on but it's still a huge drop in such a short a time that can't come up with anything plausible.