How I am investment in Oil

[FroggerMan]

That's not making any loss. Your insinuation only happens if jun goes to $20, etc.

You will lose money unless spot prices increase by more than 28% between now and when the June contract expires.

 

[qwerty11]

You will lose money unless spot prices increase by more than 28% between now and when the June contract expires.

But the futures say the spot will increase 28%. If you know better (like you seem to do) you should short them and you'll making tons of money!!

 

[qwerty11]

why buy oil etf when you have companies like mro, bp, shell paying dividends?

Because the whole world already did this before you? And they did not do very well...

Although I agree it's a much better idea than buying oil futures (as an investment)...

 

[Atikon]

I like WTI $40 by the end of the year. I too think US shale will be pushed out.

But how low can it go?
When storage is full and there is not enough demand for it's use, every barrel that comes out of the ground will drive the price down.

View attachment 225235

I have a bear call spread on USO, trying to take advantage of some of that contango.

They are storing it in the Federal Storage Facility from May onward

 

[Coner1980]

Is it a good time to invest in Oil when no one is travelling and moving?

 

[qwerty11]

No

 

[kmiklas]

JP Morgan Q1 Earnings Call:

And in wholesale, the majority of the build is in sectors most directly impacted by COVID-19, such as in consumer and retail and also in oil and gas. We expect other sectors to be impacted to a lesser extent, if we have a way to prolong downturn. We have also assumed that the stress in oil and gas continues with WTI remaining below $40 through the end of 2021.

https://www.fool.com/earnings/call-...hase-co-jpm-q1-2020-earnings-call-transc.aspx

 

[FroggerMan]

But the futures say the spot will increase 28%. If you know better (like you seem to do) you should short them and you'll making tons of money!!

Alright jackass. My whole point is, oil can go to $40 like OP says and he will still make nothing if it does not rise faster than the current curve is predicting.

Oil ETFs are short term trading instruments, not investing ones. Read the prospectus.

 

[Handle123]

I could never be so heavy, on one market even though the lows either in or nearly, but am in all the energies/hedged but on stock/etf side, have 3% position in UCO and not hedged, one few times of not having, been ave down some from 2 bucks. Oil spreads look very nice on June/Aug.

I am often years to months too early buying/selling futures, but given always hedge those, loses minimal. Finally paid off some on short Indexes and remain short, but hedging.

 

[JFonseca]

Alright jackass. My whole point is, oil can go to $40 like OP says and he will still make nothing if it does not rise faster than the current curve is predicting.

Oil ETFs are short term trading instruments, not investing ones. Read the prospectus.

The ETF that I am using DOES track the Oil price changes very closely. I have put the 2 prices on the same chart and it is almost perfect. Even with the expenses it follows very closely, which it is a great performance from my point of view.

The KID says:
“WisdomTree WTI Crude Oil is designed to enable investors to gain an exposure to a total return investment in crude oil by tracking the Bloomberg Crude Oil Subindex (the "Index") and providing a collateral yield. The product reflects the performance of the Index such that, for example, if the Index were to rise in value by 5% over a period, the product would increase in value by 5% over that same period (before fees, expenses and adjustments) and if the Index were to fall in value by 5% over a period, the product would fall in value by 5% over that same period (before fees, expenses and adjustments). The product is an exchange traded product ("ETP"). Securities in this ETP are structured as debt securities and not as shares (equity). They are traded on exchange just like shares in a company. The ETP is backed by swaps with Citigroup Global Markets Limited and Merrill Lynch International. The payment obligations of the swap counterparties to the Issuer are protected by collateral held in a segregated account at an independent custodian, The Bank of New York Mellon”