OIL Anyone?

Anybody buy a Oil stock during the crash or do you think the prices will go lower?

 

now is the time

 

After last weeks OPEC meeting I think we have reached a low.

I think KMI is the safest bet for oil. I bought KMI around $38 a couple weeks ago.

 

http://www.cnbc.com/id/102241029

 

Yea, I love KMI also for the dividend yield. Still buying WLL but getting crushed. Hate to run AWAY from a fire sale though. I will go broke or own the company by the time a barrel of crude runs up to $100.

 

low oil prices aren't real good for 401-k's

 

low oil prices aren't real good for 401-k's

 

Some predict oil to be around $33 before it bottoms out, back in the $70-$80 range by the end of 2015.

 

I can see this happening, all playing into the saudis hand. The U.S. isn't as dependent on middle eastern oil since this fracking started. In order for fracking to be profitable oil needs to be above $50.00 a barrell. since the Saudis didn't lower production the market is flooded and real supply - demand is working. If it keeps going lower the companies fracking will close them down. Less supply more demand saudis lower production and boom the oil goes up again.

 

I work and have worked as a direct employee of oil corporationa going on 25 years now. This is hitting the northern oil sands hard for sure. By education I'm a surface process engineer. For background. Gas weighted companies like one I work for it hasn't yet affected too much. However natural gas and oil eventually go hand in hand and commodities folks have lost some faith in. Reality is natural gas is on the slow slope up and is a good investment imo. Low debt companies that are heavily gas weighted with a decent low risk plan can make some decent cash over the next two years.

Folks love low gas prices however this is a dangerous game right now regardless what anyone in North America thinks. The flood gates are open and can be open for a long time being there is no way to force the hand outside of OPEC. The reserves while appearing large in US seem large at moment however there simply can not be enough sustained drilling to keep the output on the shallow reserves in northern states. I've worked both sides of the border this is my way of life and the dream chain will slide it already has as many rigs and new exploreco projects have been cancelled. Baken play and many shake LNG plays are tight pods the foothills of AB share 90% character of what's new to be discovered in latest finds in USA ridiculously common production trends actually.

Conclusion enjoy cheap gas while it lasts a year to 1.5 tops then she's the climb back...

 

Realistic indeed there is some buffer time. By April Q1 marketing we shall know if we have seen bottom.

 

Thanks Harper

 

I bought a lot right before the crash because it was going up. Crash. Bought some more to get in on the crash, crash. Bought some more to get in on that crash, crash.

I'll let you know when I buy some more. That's when it will crash again. When I sell it it will skyrocket.

 

Tank car manufacturers could be a good buy.
They are looking to buy each other.
And pipeline or no pipeline, we need more tank cars.

In fact, all kinds of rail support stuff is looking fairly healthy right now.

 

This is why I don't buy single stocks. Too risky!
I'll enjoy the savings at the pump. But won't touch the stock. And when the prices start to swing the other way, look out , you're going to see prices higher than ever. This is all being manipulated from over seas.

 

I would personally wait until OPEC and Iran come to some sort of agreement on supply. For now, I would still continue waiting. Any ups that will occur will be due to speculation, unless weaker oil producers get pushed out. Some people are saying oil could reach $20. The trend since 2008 has been bearish.

Are you guys trading futures or just the $USO stock?

 

Stopped trading oil stocks and gave my money to Vanguard energy fund. I'll let them figure out who will come out of this carnage that is the oil industry right now. Very interested in EPD, if anyone is interested.

 

Yeah I think it's still early for Oil, I would avoid US frackers for awhile...
But this will be a good trade when it comes around....

 

Iran sanctions were lifted this weekend. Probably won't see a rise in price until the major players agree on output reductions or weaker players get pushed out.

Not a good time to look at anything related to US Natural Gas anytime soon.

 

Just looked up WLL tonight. WOW. This was a $90.00 a share stock about a year and half ago maybe? Now its literally $5-6 dollars a share. They own most of the Bakken. Might lose it all. Great time to buy a Vanguard energy fund if you think oil will go back up of course.