Advertisement
If you have a new account but are having problems posting or verifying your account, please email us on hello@boards.ie for help. Thanks :)
Hello all! Please ensure that you are posting a new thread or question in the appropriate forum. The Feedback forum is overwhelmed with questions that are having to be moved elsewhere. If you need help to verify your account contact hello@boards.ie

Oil, time to load the truck?

2»

Comments

  • #32
    Jim2007
    Moderators, Business & Finance Moderators Posts: 10,825 Mod ✭✭✭✭Jim2007


    sk8board wrote: »
    Just pulled up the KIID on this etf - it’s a 2x leveraged ETF, so a 50% drop would cost you 100% of your equity and you’re out of the game.

    As commented above, and a few days ago, due to the make-up of oil ETFs, you need the forward contracts for Jun/Jul/Aug to increase over the coming weeks, which seems unlikely at the moment.

    Not alone do you need to look at the gearing, you also need to understand if and how they are allowed to use synthetics...


  • #33
    BrokenArrows
    Registered Users, Registered Users 2 Posts: 7,531 ✭✭✭BrokenArrows


    BrokenArrows wrote: »
    Yes I understand, it's a gamble and happy to risk the 1k.

    I closed out the position at the end of today for a minor 22% loss offset somewhat by the currency change.

    I'll keep an eye on it over the next few days and see if I'll re-enter.


  • #34
    Limestone1
    Registered Users, Registered Users 2 Posts: 857 ✭✭✭Limestone1


    BrokenArrows wrote: »
    I closed out the position at the end of today for a minor 22% loss offset somewhat by the currency change.

    I'll keep an eye on it over the next few days and see if I'll re-enter.

    Be interesting to follow the position over a 3, 6, 9, 12 month timescale after everyone here knocking you even though everyone agrees the price is at an all time low - all comments worry about the future prospects and agree oil is in the toilet. Demand is below the floor , knock on from Saudi and Russian war was never solved and Trump's successful efforts to drive up the price have petered out .As an example of buy low, this looks outstanding !!


  • #35
    dartboardio
    Registered Users, Registered Users 2 Posts: 2,436 ✭✭✭dartboardio


    Don't buy oil.

    Invest in the tanker storage companies whos stocks will probably skyrocket over the coming weeks

    Tnk
    Stng
    Eurn


  • #36
    phantom_lord
    Registered Users, Registered Users 2 Posts: 10,895 ✭✭✭✭phantom_lord


    BrokenArrows wrote: »
    Yes I understand, it's a gamble and happy to risk the 1k.

    It's a gamble you're losing heavily 95%+ of the time. And if somehow you win, you'd only finish up small after all the costs of holding the position.

    At least gamble in a spot where you've a chance of wining.
    As an example of buy low, this looks outstanding !!

    It's not a penny stock. It's a commodity where the carry costs are exorbitant. It's akin to buying BOI and AIB during crash, but with a payday loan.


  • Advertisement
  • #37
    afatbollix
    Registered Users, Registered Users 2 Posts: 4,128 ✭✭✭afatbollix


    Ya know when it's a bad investment when people go onto the internet and ask how you buy oil/shares/bitcoin. Ya know its a bad investment.

    If only we were using taxis I'm sure all of them at the moment would be saying how much oil they have bought.


    They are giving away oil at the moment, Oil company's are pumping out oil costing a fortune but paying people to store it. How is that good value at the moment? The next step is to turn off pumping out of wells without knowing how quickly they can come back online when needed.


    Here's a way to make a quick buck, Buy a oil tanker and send it to Texas.

    https://www.vice.com/en_uk/article/5dm7mn/buy-tanker-during-coronavirus-oil-prices


  • #38
    sk8board
    Registered Users, Registered Users 2 Posts: 4,050 ✭✭✭sk8board


    True, but oil, and instruments like oil ETFs, are not constructed/priced like normal stocks.
    ‘Cheap’ is a very relative term in the oil market.

    It’s different to the taxi driver telling you he’s buying bank of Ireland because they’re ‘cheap’


  • #39
    dartboardio
    Registered Users, Registered Users 2 Posts: 2,436 ✭✭✭dartboardio


    I think usoil (crude) will rise further over the next couple of days possibly upto 25 a barrel.

    There has been a huge immediate cut of production from Nigeria and a few other countries, this made it rise quite a bit on Friday.

    Anyone else considering buying tomorrow?

    (on forex market, mt4 platform)


  • #40
    stayback
    Registered Users, Registered Users 2 Posts: 164 ✭✭stayback


    dartboardio wrote: »
    I think usoil (crude) will rise further over the next couple of days possibly upto 25 a barrel.

    There has been a huge immediate cut of production from Nigeria and a few other countries, this made it rise quite a bit on Friday.

    Anyone else considering buying tomorrow?

    (on forex market, mt4 platform)

    Oil will drop further in value before it increases. Demand is virtually at zero .

    Hardly any planes running (look at flight radar) and listening to airlines there won’t be much activity this year.

    no traffic on the roads (listen to traffic reports). With remote working going to be on the increase after this the likelihood demand in that area will drop over time.

    By now all the heating oil tanks will be full of cheap oil.. and won’t need to be filled till the end of the year.

    Container ships are still going strong. But overall demand is very low. When supply is cut it might help the price but demand is the major factor. Another factor unemployment will soar this year with a lot them not getting work till next year.

    So my view is that oil will drop further this year.


  • #41
    phantom_lord
    Registered Users, Registered Users 2 Posts: 10,895 ✭✭✭✭phantom_lord


    USO down 15% today.


  • Advertisement
  • #42
    canonball5
    Registered Users, Registered Users 2 Posts: 445 ✭✭canonball5


    I have been buying more and more crude oil the last couple of weeks. There is no way these prices can continue to stay this low for too long. I see this as a massive buying opportunity and will be buying more this week.


  • #43
    august12
    Registered Users, Registered Users 2 Posts: 1,275 ✭✭✭august12


    canonball5 wrote: »
    I have been buying more and more crude oil the last couple of weeks. There is no way these prices can continue to stay this low for too long. I see this as a massive buying opportunity and will be buying more this week.
    Where, how and why do you buy crude oil and where do you store it??? And what do you do with it.


  • #44
    PhilOssophy
    Registered Users, Registered Users 2 Posts: 2,114 ✭✭✭PhilOssophy


    I might put a tenners worth in the car, its all it'll hold at the moment.


  • #45
    beggars_bush
    Registered Users, Registered Users 2 Posts: 4,906 ✭✭✭beggars_bush


    filled it today. Had been running it down to zero


  • #46
    dartboardio
    Registered Users, Registered Users 2 Posts: 2,436 ✭✭✭dartboardio


    Ended up shorting oil again today and made around €150.

    Easy money for sitting around doing nothing only pressing a few buttons :V.

    Stuck at the same price between €12-€13 since about 2pm though..


  • #47
    phantom_lord
    Registered Users, Registered Users 2 Posts: 10,895 ✭✭✭✭phantom_lord


    canonball5 wrote: »
    I have been buying more and more crude oil the last couple of weeks. There is no way these prices can continue to stay this low for too long. I see this as a massive buying opportunity and will be buying more this week.

    What way are you long oil?


  • #48
    PhilOssophy
    Registered Users, Registered Users 2 Posts: 2,114 ✭✭✭PhilOssophy


    beggars_bush wrote: »
    filled it today. Had been running it down to zero

    Where have you been driving? I would say mine wouldn't hold a tenner and haven't filled it in about 6 weeks!


Advertisement