What's going on with crude oil?

[Epimanes]

You guys watching the stock market? What's going on with crude oil? Why is it diving?

I thought the world was running out of oil and cost would just continue to climb as sources ran out. 60$ a barrel today.

www.finviz.com

Epi

 

[Bible_Belt]

Fracking, lower demand due to the world economy going to sh!t, and most of all, OPEC's inability to enforce production cuts.

 

[Epimanes]

Reason I ask cuz its looking like a good investment oppertunity because of the lower prices.. It doesn't look sustainable at that price and to me it looks like in time it would or should go back up to 80bux or so a barrel.

 

[Billtx49]

If it bits low 50's, buy long term.

 

[Albatross953]

The drop has cost me about $10k but I'm redirecting all my dividends right now to oil stocks. Really nice yields at these levels and not nearly as over valued as the rest of the market.

 

[SeymourCake]

I believe Stefan Molyneux from FreedomMainRadio covers this.

http://youtu.be/1pGb1Q6Cvb0

 

[rocco]

predicting oil prices will go up again when relations with russia improve.

 

[rocco]

john kerry went to saudi arabia and made a deal with them to lower oil prices. oil export is important for russian, venezualan, iran economies. basically countries that are not aligned with US national policy. I think thats why crude oil dropped so much lately. been following this story since the beginning.

 

[synergy1]

The drop has cost me about $10k but I'm redirecting all my dividends right now to oil stocks. Really nice yields at these levels and not nearly as over valued as the rest of the market.

I have been adding to positions as well in Oil companies that have been hit with it. The ETFs are a great way to diversify individual company risk. But for companies, I like all the big names and am tossing my hat into transocean which has been hit hard with bad news, a bad earnings report ( hint, they lost money). Their price in regards to the prior quarter they were profitable is a staggering P/E of <5. But its a bit of a business risk, so I am keeping my position in it very small.

Others I like are Chevron, SLL, NOV, COP, DNOW. I am adding to these positions on a cost averaging basis while the prices are down.

Anyone who thinks oil is going away is insane. it will rebound. Anyone investing in oil company stocks or ETFs WILL make money. Unlike rollarcoasters, I will be enjoying the ride back up once oil prices regress to normal.

Happy stock buying

 

[Prime_Beef]

Foreigners have an interest in lower prices..hence opec is not cutting production. Low cost will shake out many frackers. Fracking is also due to start up in other countries as well.

By cutting price, many frackers cannot compete.
Price will go back up, maybe not to th e highs, but up.

 

[mangotot]

Its not looking too good for Putin and the Russians.

 

[Albatross953]

Did I mention I'm loving the gas price with a 5.6 litre crew cab pickup?

 

[ImTheDoubleGreatest!]

Basically, because the US doesn't want to fight Russia with weapons, us yankees gotta politically screw them over. We lower the oil prices so that way we are the cheapest oil exporter on the international market. Russia is big on exporting that stuff, so when we lower our prices, less people will buy from them and more people will buy from us. Thus, Russia will then run into some financial issues. And oil isn't a big deal because 65% of the world's oil is sitting under the middle east. With Saudi Arabia and other middle eastern nations under our control, we can make the oil in the US free (but we don't). So basically, Russia can't win no matter what.

 

[bp47]

End of QE3 has alot of people returning to dollars, shorting emerging markets is a decent trade at this point. Oil was a mini bubble fed by counterfeiting... I mean QE, it burst now and the stock market will be next, that is my guess, and once that happens you'll see QE4 being initiated rather fast, which might make the dollar a hot potato very rapidly as money velocity picks up along with new QE, as soon as this happens, 'crazy things' like 6000 dollar gold and such will not be so far of.

 

[Epimanes]

Been contemplating hou.to ... Its just a notch above 50week low.. Anyone got any insight on this etf? Or others?

That.. And su.to (suncore) has really caught my eye but I think it will dip lower still.

Epi

 

[SeymourCake]

Crude under heavy pressure. Set for the worst year since '08.
http://finance.yahoo.com/news/oil-set-biggest-slump-since-053801429.html

U.S. is in an oil war with Russia and OPEC: Katusa
http://finance.yahoo.com/news/oil-wars--opec--russia---shale-182539804.html

 

[Bible_Belt]

I never traded commodities, but with stocks, trying to pick bottoms is a fool's game. Anything at a 52-week low is going to tend to keep going down, at least a lot more frequently than it will reverse course.

The price of oil is so news-dependent, I don't see how you could control the risks. I would want some sort of hedge or risk control against massive overnight price movement.

 

[rocco]

So what was the deal that they reached and why would the Saudis agree to deal NOW? The Middle East has always been the most volatile region on the globe. If they needed to make a deal with us, I'm thinking that they'd have done so years ago.

Well a deal was made years ago by George H.W. Bush. which goes to show the deep ties between the Saudis and our government. It's interesting the friends/alliances that are made when lots of money is involved. In this case, between the world greatest oil producing nation and the world's most powerful country.

http://www.huffingtonpost.com/raymond-j-learsy/oil-prices-plunging-presi_b_6020330.html

 

[rocco]

U.S. is in an oil war with Russia and OPEC: Katusa
http://finance.yahoo.com/news/oil-wars--opec--russia---shale-182539804.html

the title of this news article seems to contradict this article which states
"Secretary of State John Kerry's visit to Saudi Arabia a few weeks back was to sign a secret deal by which the leading OPEC state would saturate the markets with excess oil and cause prices to fall for the global commodity. This move would have the consequence of causing vast harm to the Russian Rouble, and increase inflation and price instability for the Eurasian state.

http://www.examiner.com/article/as-...ses-harm-to-russian-currency-china-intervenes

 

[rocco]

I think the drop in oil prices also has to do with the drop in global demand for oil.