Does anyone remember negative oil prices last year? You can't make this stuff up, who would have guessed this would happen? Times are getting more and more unpredictable!
Bloomberg
Brent Oil Near $65 With U.S. Crisis Now a Global Supply Shock!
https://finance.yahoo.com/news/oil-extends-gain-u-crisis-235147230.html
I wonder how long this will be a problem, once Texas thaws out will everything go back to normal or will something else pop up?
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Knew this was coming. I wasnt real liquid at the time but I was going to buy some USO. It is not the best way to play it but I do not engage the futures markets where the real play was.
It was common sense that, at some point, the supply glut would reverse. OPEC and Russia werent about to decimate their economies to maintain low oil prices especially after Russia crushed the Saudis.
The mainstream idea that oil is dead and that peak oil (demand) was reached is false. There will be a lot of oil consumed over the next decade.
Oil will end up kicking off a commodity boom that will last into 2024. It is a little early so I would expect a pullback in it before the true run up starts.
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That sounds like a great strategy for this oil play. I have to agree with you that the oil-producing countries weren't going to let it stay low forever. I don't even think electric cars are going to put a dent in it for a long time either
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Considering the average age on the car on the road in the US is over 10 years old, that means there are a lot of cars being sold today that are not going away for a long time.
And 99% of them use gas/diesel.
Hell they are writing 7 year loans on them.
So the dent is going to be very slow.
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That's a plus for me considering I work on the fuel systems for cars and boats! I'm glad I'm at the end of my career, a few more years and I'm out!
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