RE:Price of OIL??wictor11 wrote: Okay so I am totally lost as why oil is climbing so dramatically. I'm not complaining cause i bought into BTE on Friday. Besides rig declines there is still a big oversupply. Are the fundementals justified for this big increase. Could you imagine if OPEC states they will do a cut. From what I read OPEC would like 50$ oil which is good by me. I'm just trying to understand this market. Crazy but good. Any thoughts. Lastly if the price climbs over $40 -50 will that not cause the shales producers to ramp up and then we are back to square 1 again. At what point is a good ext strategy? I am willing to hold onto this for a year or two. Do you guys see a reversal in oil prices if we go up to fast. Cheers and good luck to all.
Well Oil does not have a "big oversupply". It is actually 1-1.6M/day range (when compared to the 80's it was around 12-14M/day). Oil is oversold and will remain going up in the short/medium term. The one big risk that we have is the physically storage limit in the US. If we hit the limit, Oil will tank hard. Use SLs to protect your investment, but I am long an comfortable.