Oil futures….

[economistParticipant 225]

Hi there guys. Been thinking a lot lately about this manufactured oil “crisis” of late… For those who aren’t in the know, I’ll give you a recap: since 2008 the U.S. has been ramping up oil production, aided by friendly conservative politicians in the biggest oil boom states, who have put almost no cap on the amount of oil that private companies are allowed to pump. The result was lower prices of oil both domestically and internationally. This flood of domestic oil allowed us to outprice international producers, who then were faced with two choices: A. Lose a TON of money in lost sales, but preserve the price of oil somewhat, or B. Go to economic war with the U.S. domestic producers, by attempting to produce so much oil that they could price us out. Overwhelmingly, the Gulf states went with B and because of that the domestic oil boom is dying. In North Dakota especially, thousands of oil workers are losing their jobs every month because it simply isn’t profitable to continue producing oil at this point. The companies are literally losing money pumping it out of the ground.

So that gets us to where we are today. The U.S. and OPEC are essentially in a quiet “price war”, and along with the reintroduction of Iranian oil into the global market as well, prices have continued to fall. Currently the price of a barrel of oil sits at $30.51 as of the time of this writing, having been well over $100 a barrel only a few short years ago.

Now, here’s my simplistic logic, which I would love you guys to tear apart: At this point, wouldn’t it be a great idea to invest a few thousand dollars into oil futures? Buying at $30 a barrel seems like a pretty good idea to me. Even if it looses another 50% of it’s value in the next year and goes down to $15 a barrel… won’t it eventually be much, much higher? I’ve noticed other cases like this in the commodities market… consider how far gold and silver have come since the early 60’s.

This turned out a bit longer than I thought, but hopefully I gave a good rundown of the situation to date, and made my reasoning clear. My question to my fellow MGTOW is: Should I buy oil? Is there a profit to be made here, somewhere down the road?

Thanks for reading.

[Blue SkiesParticipant 15665]

oil is undervalued. Wait a few more months, then buy oil. the sanctions on iran were lifted very recently

MGTOW is not a movement, it is a way of life.

[TheroniusParticipant 975]

Oil is likely to make a comeback at some point, though I don’t know when. I have made good money on oil-based stocks before, but often had to wait many years for the payoff.
The low price of oil is very likely to slow down the adoption of electric cars and hybrids and people will get complacent. The next big oil price hike will totally take everyone by surprise, especially as the low prices are causing a huge pullback in planned exploration and development of oil resources.
Regardless of new car technology, solar, and other stuff, the world demand for oil is still going to go way up in the next decade unless Asia and Africa sink into the oceans. That being said, I would still be very hesitant to suggest to any private investor that they get into commodities futures. I have stocks that are oil-dependent, and they are sucking now, but I think I’ll hang onto them. The world is a long way from done with petroleum.

"I am is reportedly the shortest sentence in the English language. Could it be that I do is the longest sentence?" - George Carlin

[BeerParticipant 11832]

I’d much rather put money into dividend paying oil and gas based companies than bet on commodity futures. While I’m waiting for the next pop I can collect dividends and reinvest them.

Plus I think even if OPEC can regroup and manipulate prices again, they know our oil production needs to see about 45+ a barrel to stay profitable…I wouldn’t expect them to try to spike prices much beyond that level or we’ll just ramp up our production and drive prices way down on them again. Unless we have World War III I’d be betting on oil staying relatively cheap for quite some time.

[RennieParticipant]

All those people who dashed for Fort McMurray are now finding their prospects and fortunes drying up.

I knew the socialist mongrels would show up to the party.

[uchibenkeiParticipant 7965]

i live in kuwait and they’re tightening their belts here for a long spell of lower oil revenue. Word around the campfire here is the US is doing this, with the help of saudi, to hurt Russian oil revenues. there is an economic war going on with russia as neither side wants to use conventional warfare….yet. who knows what the truth is? What i’m hearing here makes sense and i don’t believe anything from the u.s. media.

I bathe in the tears of single moms.

[economistParticipant 225]

uchibenkei, I have also heard the same thing. That this whole thing is being orchestrated partially to really drive home the type of economic aggression we practiced on them during and after the whole Ukraine debacle… which isn’t really over, but the U.S. has lost interest at this point.

[BurgundyParticipant 1525]

Since Rothschild and Rockefeller have sold off billions of their oil and/or gold stocks, last (prior)year, and invested in renewable(“clean”) energy among other things, one can assume two things.

They knew the price of oil would go lower, and then probably would buy it back, or they knew oil was at it’s end, and that synthetic and renewable energy was about to get a lot more interesting.

Last year though, the oil price war, was more an effort against Russia. But since there are always people who will earn a lot from these sort of stunts, one wouldn’t be surprised about it’s planned process.

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