Yup....don't get used to the low prices. I'm sure that they will bounce back with a vengeance in the near future.
The problem is figuring out which player to bet on..If you're in the market and have some funds lying around... put it in an established oil company! Now!
The price of oil will be right back up to where it was... sooner or later. You can count on that!
If you don't want to choose individual stocks XLE is about 45 percent in XOM and CVX divided pretty close to equally between the two. For global exposure IXC is about 13 percent each in XOM, CVX and RDS, about 6 percent each in BP and TOT. PSX has been among the better performing energy stocks, perhaps more accurate to say least bad performing. CVX has committed to maintaining the dividend, XOM will probably as well. COP chopped theirs in the last big oil downturn. Yields are pretty high right now. You pays your money and you takes your chances. FWIW I'm overweight energy stocks, also underwater on them for the moment.The problem is figuring out which player to bet on..
The majors should survive I guess..
A lot of smaller players might go under..
I think a refiner, like PSX is a good play
Yup...companies are filling up tanker ships and parking them offshore.The problem is there are no more places to store it; everything is full to the brim and everybody is still producing with demand way off.
I expect it will go a bit lower.
They don't call it the LAW of supply and demand for nothing. The price of oil has been manipulated for decades... but they can't beat the law forever.
They pumped so much oil that they have run out of places to put it. There are hundreds (maybe thousands) of full tankers floating around on the world's oceans with no place to go. (And that's a disaster waiting to happen).