buying oil

aidanki

oil is falling and falling, and cant be far off bottoming out

as a long term investment, I wouldn't mind buying a few barrels at $20 a barrel or whatever I think is the bottom point

what stocks/indices are tracking this directly

Zascar

You'd have to be prepared to go very very long - oil could stay cheap for a very long time...

See more here https://www.reddit.com/r/investing/search?q=long+oil&restrict_sr=on&sort=relevance&t=month

phantom_lord

This must be the fourth or fifth thread about buying oil in the last while! Makes a change from the BOI and AIB threads anyway. Why does no one ever want to buy something that's going up though? Can't recall any threads about getting on the S&P bull run of the last few years?

positron

Just a lurker here and have 0 investing experience, but I find this oil price thing really interesting. Consider a few points!

* Renewable energy technology hasn't made any massive leaps in last 6 months.
* Sauds haven't given up their wealth and gone all charitable. Political situation around Syria / Iran is clearly bothering SA badly - if/when ISIS gets pushed back enough, ex-ISIS or ISIS-in-hiding will all retreat to wahabist SA, which in turn, could wreck Saud family control.
* Entire world runs on petroleum products. Whatever the downturn in economic activity etc, all 7 billion depends on oil at the moment. That is demand hasn't gone away.

Now if I may speculate - Saudi being a US ally, increased production initially to hurt Russia (over the Crimea situation), and now they are keeping the production high because - well Russia is coping, US has shale, and everyone else seems to be coping too, and Iran is making progress with West. And overall Sauds are a in a bad spot and they are throwing everything they have and the kitchen sink at it, trying to win a losing battle.

It's hard to guess what will happen long term - but since the world was okay with $100 prices, there is all chances of Saudi - or someone else who gains control of those oil reserves - pushing the price back there sooner or later. So I think oil related investment will pay out in long term (if the company that you are investing, survives until then).

If a new form of energy source comes about - say table-top fusion reactor whatever - then yeah, oil will go out of fashion. Unless there's a secret scientific breakthrough that they know of and we don't... imho.

positron

Just a lurker here and have 0 investing experience, but I find this oil price thing really interesting. Consider a few points!

* Renewable energy technology hasn't made any massive leaps in last 6 months.
* Sauds haven't given up their wealth and gone all charitable. Political situation around Syria / Iran is clearly bothering SA badly - if/when ISIS gets pushed back enough, ex-ISIS or ISIS-in-hiding will all retreat to wahabist SA, which in turn, could wreck Saud family control.
* Entire world runs on petroleum products. Whatever the downturn in economic activity etc, all 7 billion depends on oil at the moment. That is demand hasn't gone away.

Now if I may speculate - Saudi being a US ally, increased production initially to hurt Russia (over the Crimea situation), and now they are keeping the production high because - well Russia is coping, US has shale, and everyone else seems to be coping too, and Iran is making progress with West. And overall Sauds are a in a bad spot and they are throwing everything they have and the kitchen sink at it, trying to win a losing battle.

It's hard to guess what will happen long term - but since the world was okay with $100 prices, there is all chances of Saudi - or someone else who gains control of those oil reserves - pushing the price back there sooner or later. So I think oil related investment will pay out in long term (if the company that you are investing, survives until then).

If a new form of energy source comes about - say table-top fusion reactor whatever - then yeah, oil will go out of fashion. Unless there's a secret scientific breakthrough that they know of and we don't... imho.

daveirl

This post has been deleted.

daveirl

This post has been deleted.

Roonbox

aidanki wrote: »

oil is falling and falling, and cant be far off bottoming out

as a long term investment, I wouldn't mind buying a few barrels at $20 a barrel or whatever I think is the bottom point

what stocks/indices are tracking this directly

I would look at the big Companies that don't have a massive amount of debt.