oil/mutual funds

[jimmyengland]

been seeing alot of reports recently saying that oil is going to go sky high again. think its about 80 bucks or something right now going over 100 possibly to 150. this brings my question. have some spare cash laying around right now and was thinking about new funds to invest in. is there any oil mutual funds out there? or funds that have alot of oil companies in? an alternative would be investing in a completly seperate mutual fund. where are you all investing your money right now? thanks - hope you are all well and making tonnes of money

[Slug]

Here's a link to all of the ETF's following the price of oil. Know that there are countless variables affecting the price of oil and that experts are often wrong in predicting where it's going. It is a gamble, not an investment.

[Landlord Greg]

Please don't interpret this as a moral judgment on anyone here, as that's not how it's intended, but I never invest in oil, because I don't want to contribute to it's trading price. I don't believe that oil companies or OPEC have American citizens' best interests at heart, and I don't want to support them in any way.

Best of luck with your investments,

_______________________
Brian
EZ Landlord Forms

[kork13]

OPEC has stated that they have no intention of letting the prices go sky high, that they are trying to keep it in a 'healthy range' of prices. When oil prices skyrocket, yes it makes them plenty of money, but it also serves to put tremendous pressure to move away from oil (ethanol, renewable energy, etc). This gives their oil a lower future value. Also, OPEC wants to keep control over oil prices. The last time it went way high then came back down was due in no small part to lower demand. They can't control demand. Instead, they want to control the price by adjusting the supply to just match demand.

I'm not saying that oil will not go higher, but I don't see a sharp spike on the horizon. HOWEVER: There is historically a summer bounce in oil prices (due to the summer travel season increasing demand). So in the short term, oil does most likely have a solid upside.

[jimmyengland]

i hear what ur saying. i dont want to drive the price of oil up - but if the price is going to go up which it ALWAYS does up to minimium the summer i want to get a piece of the action. Also i hear what ur saying about OPEC wanting to control prices. However i cannot see this to be logical. It is only a matter of time before there are electric cars or cars using some other type of energy to power them. Therefore once the demand for oil decreases the price is going to drop significantly - it is only a matter of time b4 someone comes up with a cheaper alternative.Therefore altho they are saying they are going to keep prices low i cant see they will since eventually there will be way less demand and oil will be worth very little. either way what else do you recommend investing in.

[JBinKC]

The time to really consider buying oil was when it was off 75% (Dec'08) of the high of $147/bbl which matched the highest percentage it historically ever sold off in the past. It happened three times before the latest one during the age of crude oil.

I have no qualms of buying it now but just keep in mind at this juncture in the cycle oil is strictly a momentum play based on the perceived strength of the Chinese economy and just another set up until the next bubble squashes it.

[ea1776]

Icenx

[red92s]

OMG SPECULATORS DRIVING UP THE COST OF OILLLLL!!!!

Kidding.

Funny how all those guys on wall street manipulating prices are so evil until everyone else realizes how much money they are making.

The time to buy into oil was many months ago.

[cyclone1]

I think it will top 100

[cyclone1]

You just have to look at the history of oil and natural gas. It seems to always rise (even if there are bumps along the way). Its all about supply and demand

[EEinNJ]

Take a look at XOM. They make a HUGE amount of money, and even more when oil goes up. The stock is pretty reasonably priced right now. Over the long, long term XOM has been one of my best investments. That said, looking ahead over the long term I don't think they will do as well, and I'm slowly reducing my position.

[Broken Arrow]

Despite the positive earnings season, worries over the Greek and Portugese debt (and their credit rating being downgraded to junk status by the S&P) has put markets in general under severe pressure. Oil is no exception.

Disappointing because I really liked the earnings prospects this season enough to trade in it, but I am constantly finding myself running for cover.

Oil has indeed had a nice run up. I've made an oil trade a little while back over such prospects, but now, I think it's kind of run its course. Short term crude is hovering around $82 to $84 per barrel, and I'm not seeing how it's going to break out anytime soon. (That doesn't mean it won't. Again, it just means that *I* don't know how it will break out at this particular moment. )

What's more, OPEC still has a large flotilla of surplus inventory that they want to slim down.

I think this trade is either nearing an end, or has already ended. The ship may have already sailed away.

[feh]

been seeing alot of reports recently saying that oil is going to go sky high again. think its about 80 bucks or something right now going over 100 possibly to 150. this brings my question. have some spare cash laying around right now and was thinking about new funds to invest in. is there any oil mutual funds out there? or funds that have alot of oil companies in? an alternative would be investing in a completly seperate mutual fund. where are you all investing your money right now? thanks - hope you are all well and making tonnes of money

I don't follow the price of oil that closely, but I remember reading something in the last few weeks that stated almost the exact opposite of what you wrote above, that there isn't (and won't be for the next several months at least) market pressure to push the price much higher.