Oil could go relative short term to $80, end of year even below $50 and to levels of 30/40
You have been warned for your business investment.
You have been warned for your business investment.
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how to hedge against oil price collapse?
- Thread starter toben
- Start date
just follow price. i was watching GC futures trade yesterday and when it was down to 1500 price looked like it was bottoming but then it kept going lower and closed down another 25 points. if you traded based on fundamentals or anything other than price you would've been carried out feet first. if you were one of the zero hedge crowd just going long gold all the time losing 100*90 against ~$6k in equity per car is going to hurt.
Quote from toben:
Hello
I have a support by business for tight oil plays. If the cost of oil falls below $60 my work will slow considerably. If it falls beneath $50 I am out of business. Can anyone direct me to an easy way to hedge against this? Would I just buy puts against crude? Sorry for the noob question. Thanks in advance for the help!
Sell the hell of it if you are concerned. $90 to $100 price is good for energy producers.
Is this based on a crystal ball or is there another method behind this? I agree that all of what you say is POSSIBLE but the chance of it going below $50 is slim (and I am bearish on the world economy) and the chance of it going as low as 30 is, of course possible, but slimmer than Twiggy. Twiggy might be a very dated reference ... lol.
Quote from traderslair:
Oil could go relative short term to $80, end of year even below $50 and to levels of 30/40
You have been warned for your business investment.
Quote from Swan Noir:
Is this based on a crystal ball or is there another method behind this? I agree that all of what you say is POSSIBLE but the chance of it going below $50 is slim (and I am bearish on the world economy) and the chance of it going as low as 30 is, of course possible, but slimmer than Twiggy. Twiggy might be a very dated reference ... lol.
+1 w/ the usual caveat to just watch price. if oil goes to $50 you can be sure there is another financial crisis in which case you should be hedging against complete disaster not just oil.