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Low cost of oil per barrel, investment potential?

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Low cost of oil per barrel, investment potential?

 
Old 10-31-2015, 01:46 PM
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Originally Posted by FluKy15 View Post
Has anyone considered investing in oil at the moment? Oil is so cheap right now, I'd imagine it would make anyone a killing when it goes up
Now that we have hindsight. Oil is cheaper than in Feb. Saudia Arabia is now in a deficit for the first time in a long time. They sold bonds to raise $19 billion to plug a deficit hole. Shell and Exxon are slashing personnel. Their profits are up by 2 fold almost for their refinineries but they are down in oil exploration...not pumping as much out. The US fracking business has put a big dent on OPEC and will continue to do so, even as Saudia Arabia tries to kill the US competition by maintaining current production even as oil prices go down. Iran will no longer be under sanctions to sell oil once the nuke treaty is signed. China's economy has slowed and their agenda for the next 5 years is to lower GDP by exports and increase consumer spending and high tech services....which means less oil demand from China. Sanctions are on Russia so that means that their oil is limited to an extent. When Russia and Iran can sell oil again at full price and full production, this will all affect oil prices. With China no longer the biggest buyer of gas, prices will no be as high as they used to be. Tesla is making big investments in pushing electric cars to be a bigger player in the market by investing $2 billion in a new factory in Reno, NV with investment from Panasonic. Toyota has promised to pretty much end the combustion engine by 2050. All this doesnt seem to bode well for big oil.

I am thinking of investing in Chinese businesses. But very few are listed in US exchanges. I only know two.

I did buy some of Russian oil stocks due to the Ukraine crisis. I imagine oil will come back for them once sanctions are over.
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Old 11-19-2015, 07:45 PM
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There is no long term future in oil, there cant be. The writing is on the wall. Alternative propulsion technology is the future and has to be to sustain our way of life and an increasing population on this planet. If you want to try and game/time the next decade or two of investing in fossil fuels its your prerogative. I certainly wont. Even if it makes money during that time, its not a technology I want to continue to support in that way. And principally from a business standpoint I refuse to invest in unethical monopolies. OPEC has had one globally for the last 100 years. Time for something new to be allowed into market. It is happening, just at a snails pace unfortunately. And not because of the technological capability, but by our politics.
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