how to take advantage of the low oil price?

[trend2009]

BP
RDS.A
CVX
PSX
Solid balance sheets
Stay away from shale, small/mid cap, MLP’s, and XLE (since it’s 44% XOM and CVX).

what is the problem with xom?

 

[trend2009]

Holy mother! It hasn't been that cheap here since maybe the 90s.

Why buy for one year when you can buy for several years into the future. Who knows how long the recession will last. Wait for sub $20/bbl. Although there is talk of courting Saudi Arabia from OPEC to join a US-Saudi alliance to form the biggest oil producing pact in the world.
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what is the symbol in IB TWS? you mean buy oil future which expires in 96months?

 

[SimpleMeLike]

BP
RDS.A
CVX
PSX
Solid balance sheets
Stay away from shale, small/mid cap, MLP’s, and XLE (since it’s 44% XOM and CVX).

you forgot XOM

 

[hhiusa]

what is the symbol in IB TWS? you mean buy oil future which expires in 96months?

Yes, it is possible to buy them that far ahead. The symbol is COIL. However, you need to apply for ICEEU market data through IB. I haven't seen expiries that far out on IB although you can through ICE Connect.

https://www.theice.com/products/219/Brent-Crude-Futures/expiry

So they do go a ways into the future.

 

[traider]

BP
RDS.A
CVX
PSX
Solid balance sheets
Stay away from shale, small/mid cap, MLP’s, and XLE (since it’s 44% XOM and CVX).

Wait you mean XOM is unsafe? Thought they were one of the largest.

 

[Clubber Lang]

what is the problem with xom?

you forgot XOM

Wait you mean XOM is unsafe? Thought they were one of the largest.

XOM has one of if not the highest breakeven costs per barrel (Somewhere in the mid $80’s).
Meanwhile CVX has the lowest cost per barrel and a much better balance sheet. BP and RDS.A also much lower than XOM.
PSX probably has the best management in the industry. Conservative and solid.

As for XLE- I would rather own any of the stocks I mentioned, than an etf loaded with companies that could/will be wiped out in this downturn.

The Big 5 (XOM CVX TOT BP RDS.A) will survive this as they always do and pick the carcasses of all the failed companies and come out stronger and with far less competition.
Don’t overthink it. Stick with the behemoths.

 

[marcela 2020]

oil is very cheap, and expected to go higher in future. how to take the advantage of the low oil price? stock price of a lot of oil companies does not relate well with oil price.

Although the oil fell sharply as a result of the pandemic, it is confirmed that during the last days the hydrocarbon registered a significant rebound In just two days it had a rebound of 93.03 percent, but it is still far from its best time of the year. little by little he recovers