looking at the long term charts, I think it's going much higher. If there's not a recession, or if the Saudi's and Russia don't dramatically ramp up production, the price of oil could get ugly for us. Don't be surprised if oil hits $100 next year.
looking at the long term charts, I think it's going much higher. If there's not a recession, or if the Saudi's and Russia don't dramatically ramp up production, the price of oil could get ugly for us. Don't be surprised if oil hits $100 next year.
Thanos was the hero
I bought a large amount of oil Etf FENY about 2 months ago and I’m up nice. I think with inflation so goes oil prices and it should be a good investment for awhile.
I'm not liking the price at the pump, but my portfolio sure likes trend. I've actually trimmed some of my positions to balance my account.
Best way to buy into it?
He/him
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A good oil ETF with all the big players in it. You will get a nice dividend while you wait. Lots of oil ETFs to choose from just check the fees.Originally Posted by rds_nc
Thanks
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That oil chart is impressive.
Thanos was the hero
I’m up just over 20% in FENY and got and extra 15 shares from the dividend since I bought into it around 3 months ago. I still think it will be going higher.
alot of fires and explosions on oil platforms in the last few days.
Thanos was the hero
WOW. All of OPEC, except the UAE want to keep production where it is until 2022. If thats true, and if that happens, get ready for an oil shock. It was thought that OPEC would increase production, if they don't oil goes to $100 this year.
Thanos was the hero
Why aren’t we drilling for oil here? What happened that had us self reliant on oil, but now we are not?
A couple points
no such thing as being self reliant on oil. We have always imported oil, sometimes more sometimes less. We import less oil today than we did 2 years ago. The eia has a nice chart showing US imports:
https://www.eia.gov/dnav/pet/hist/Le...s=MTTIMUS2&f=M
oil has always been a global commodity. supply and demand is what drives prices. As the world economies ramp up, demand for oil ramps up, which is what is happening now. The major oil players made an agreement to not increase supply January last year to balance the markets. They having a mtg now to discuss increasing supply.
As far as oil production here in the US. Because of the way we have to get the oil, it's rather expensive so the oil producers need higher prices to turn the rigs back on. Baker Hughes puts out nice weekly report and rigs are starting to come back on. I'm guessing as oil gets closer to 100, we'll get alot more rigs on.
https://rigcount.bakerhughes.com/rig-count-overview
The UAE is fighting with the Saudis and Russia on a deal. Maybe we get a free for all and everyone starts producing on their own. That would certainly plummet prices.
Thanos was the hero
OPEC increased production/supply to force the prices into the basement to punish both the USA and Russia, as their oil extraction is more expensive than pulling it out of the sands. I believe it costs less than $30 per barrel for sand oil, versus $60 per barrel for shale oil, which is our primary inland oil production...
Last edited by apenland01; 07-05-2021 at 08:21 PM. Reason: increased production/supply...
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Won’t take long for gas price threads to start popping up in the lounge.
Surprised it's down. Fear of countries going it alone, OPEC breaking up, higher prices leading to US producers starting back up??????
Thanos was the hero
Lambda variant................. Might be the reason for the oil and market sell off.
Thanos was the hero
This is what is being reported. With no OPEC agreement, countries will produce more and keep price from increasing, and may go slightly lower.Surprised it's down. Fear of countries going it alone, OPEC breaking up, higher prices leading to US producers starting back up??????
https://www.bloomberg.com/news/artic...t-roils-market
A few interesting points. Sounds like oil needs to sustain a $85 level for shale to really kick into high gear. And, they appear content to just hedge via futures on existing output. They don't think these prices are sustainable so they don't want to ramp up production to then shut back down in a few months.
Thanos was the hero
I think that is the reason Saudia Arabia wants to keep prices below $75-80. They do not want for price to increase high enough to kick-in additional production from around the world.
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