long term oil?

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Skinnayyy

ST

9y

As a long term buy, yes, it'll go up, in the long term. But how long it will take vs. another investment to make it a 'good' long term buy, is the hard part.

OPEC denied a meeting to talk about the low prices so they seem to be fine with it for now.

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SOFinancier

?

9y

The reason why so many people don't make money going long is because of a lack of confidence. Right now, oil is low, and the reason why it's low is because so many investors are still afraid to enter Oil. As soon as their fears dissipate you're going to see that price rise. A lot of people are afraid to buy oil right now, but those are exactly the type of environments that you find cheap investments in. It's probably going to be a bouncy ride, but I feel like as soon as summer arrives when people start driving more, demand will increase. February is the coldest month of the year I doubt a lot of people are using their cars as much as they use them during July or August. Be greedy when everyone is fearful.

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wareagle4230

RE

9y

Best Response

SOFinancier:

The reason why so many people don't make money going long is because of a lack of confidence. Right now, oil is low, and the reason why it's low is because so many investors are still afraid to enter Oil. As soon as their fears dissipate you're going to see that price rise. A lot of people are afraid to buy oil right now, but those are exactly the type of environments that you find cheap investments in. It's probably going to be a bouncy ride, but I feel like as soon as summer arrives when people start driving more, demand will increase. February is the coldest month of the year I doubt a lot of people are using their cars as much as they use them during July or August. Be greedy when everyone is fearful.

Slight increases in demand for oil base on holiday seasons are moderately priced in. The real change in the price of a barrel of oil has to do with supply. The Arab countries are flooding the market right now in attempts to bankrupt or at least disrupt fracking in the US. There's no telling how long they can produce with such tight margins, but eventually they will tighten supply again and prices will go up. The fact that 5-10% of Americans decide to take that trip to visit Mom with $2.25 gas as an option doesn't play into this very much.