I need a barrel. Looks like the cheapest way to get one is to buy one full of oil lol.
I need a barrel. Looks like the cheapest way to get one is to buy one full of oil lol.
I've actually been wondering if it would be a smart move to invest in some oil stock now, seems everything is low. Then hold it for a while.
That's what I did and hopefully it will come up over the next 2-3 years and then I can RETIRE!Originally Posted by BassTuner
2001 ChampioN 206 Yamaha 225
THere was pretty bad data out last night and today about inventories for oil. Now, I would normally think that oil would sell off. The fact that it didn't, is usually a good sign that a bottom may be in. The kicker is this, the dollar is down big, which is helping support the price. A FX fund was forced to liquidate today, billions in stock and currency, long and short, was forced onto the markets. It totally screwed everything today. I know it hurt me today. So I wouldn't be in such a hurry to call a bottom in anything. Especially when there continues to be negative data.
Thanos was the hero
Im betting the bottom isnt here yet. But I am looking to start getting into oil more immediately on the next dive.
I think oil will get much uglier before it goes up again. We are running out of places to store it and they are pumping like crazy.
Yup, that was part of it. Of course the media won't report it because it will cause fear. Maybe I missed it, but all I saw by the media was guessing and bottom calling.
Thanos was the hero
I still don't understand why low crude oil prices is bad for the market overall. Doesn't cheap oil benefit virtually every other sector in the market? Consumer spending, retail, manufacturing. Isn't more money in the peoples pockets a good thing, cheaper shipping costs, cheaper manufacturing costs etc etc.
I think what we are coming to realize is that the fall in oil prices is not only a result of more supply but also because of weaker demand because of a slowing global economy. China's growth rate was overstated and demand for oil and other commodities have been falling and bringing down other emerging market economies. This will have an effect on our economy and it has been described in Barrons as a global economic death spiral. You have a capital intensive industry slowing, which is hurting companies like caterpillar and the large industrials which supports workers and other companies that manufacture parts engines etc. On the flip side this extra spending money may be going to restaurants and maybe some retail which supports minimum wage workers and is not capital intensive. High priced oil is not good for the economy and very low cost oil is not good either. In my opinion economic activity is best when it reaches an equilibrium and balance. That is just my opinion but the market seems to share it given the declines we have seen in stocks that are not related to oil. I think the fall in oil is actually a symptom of a bigger problem rather than being the cause of the problem but that is just my opinion and when it comes to stuff like this nobody ever really knows until we get through it.
I love love love low oil and gas prices. Paid a $1.38 the other day. These low gas prices are what caused me to order a new boat this spring.
Now they are talking about banks getting in trouble, people buying credit default swaps on investment grade corporate bonds, and high yield bonds defaulting. This could be 2008 all over again if they are right.
I'm glad I haven't bought into any of the banks, yet. At least not until this all shakes out. I read early last month an article about how much the banks have tied to all the oil but until oil bottoms out I'm gonna sit on the side and wait to get a really good deal.
He/him
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Looks to me like the stock market drop really started Jan 6. The day Oil broke below $37+/-. I'm thinking the markets are not going to start healing up untill oil gets back to $40, and stays above there for a few days. Everybody "Lives" above that price.
Impressive short squeeze in oil the last few days. I'm not sure the fundamentals really line up with it though. I'm guessing that if price hangs around at these levels, for a few months, we might start to see the fracking rigs come back online. But I think there will have to be some bullish data that comes out to sustain the price.
Thanos was the hero
It's good for the markets at this price. Notice the disconnect between a 5% move up in USO and the XLF flat today !!! WTI is $37.90. T Boone Pickens always used $40 / barrel as a basis point. Such as he would say " $100 before $40 ". I think that is the low point where everbody "survives", oil companies AND the banks they are in debt to . $35 to $45 a barrel and the markets are free to act on their own, IMO
I work for MRC Global which is tied to oil. Stock price hit its 52 week low on 2/11/16 at $8.50, today sitting at $14.89.
Corporate folks gotta be loving that.
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