What instrument to use when bullish on OIL ?

Correct me if I'm wrong, but wouldn't a futures contract bought now, and rolled over month to month be a better alternative?

I'm wanting to hedge against higher prices at the pump, but buying I don't see how the ETF's will work as well.
 
the problem with futures contract now for long term position is the super contango we have with crude right now.

The price of the 2010 contract is more like $60 now rather than $4x the spot is. So you have to pay $60 if you want to go long term.

It clearly spells the spot price is a bargain but there is no way to take advantage of this price unless you store up crude. Or is it??? maybe oil stock is the way to go but I suspect the super contango has been priced in...

Any ideas? I'm looking to buy some crude for the longer term as well but can't find a satisfactory instrument.
 
Quote from cokezero:

the problem with futures contract now for long term position is the super contango we have with crude right now.

The price of the 2010 contract is more like $60 now rather than $4x the spot is. So you have to pay $60 if you want to go long term.

It clearly spells the spot price is a bargain but there is no way to take advantage of this price unless you store up crude. Or is it??? maybe oil stock is the way to go but I suspect the super contango has been priced in...

Any ideas? I'm looking to buy some crude for the longer term as well but can't find a satisfactory instrument.
More...

Gotta bump this back up. I've been pondering this for a while, and want to hedge long term.

A person can buy the ETF's today, and probably triple their $$$. However, what happens when they get to the 3x their money point? Sell some of the shares to offset pump prices?

If a person does that, how are they going to get more shares at a price they paid in Jan 2009?

This is why I wonder about RBG contracts, and rolling them.
 
Why would someone go with DXO (or any other oil price ETF) over USO considering the following numbers?

I just don't understand it.

DXO is supposed to be "double exposure", but it's anything but.


(all time high to Friday Jan 23 closing price)

Crude oil: 147.27 to 45.75 = -68.93%

USO: 119.17 to 32.33 = -72.87%

DXO: 29.65 to 2.78 = -89.61
 
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