Yes they are tightening. Although, there was about a $2 contango that USO just ate from April to May contract.
The best time to own USO is when WTI is in backwardation. you new that though.
Actually, a big difference. Too long to explain to you. But, With WtI oil production about to shrink and Brent supply increasing you will see a shrinking off the spread. I would not be surprised to see WTI at $65-70 this June and Brent oil At $60-$65.
PS... bad for refiners which is starting to be recognized as refinery stock prices have been moving south lately.
Though, contango eats away at this ETF, It looks like a move to the 62-62 level may happen this week if inventory levels are negative. Although, USO did just lose $2 in WTI contango from the April to May contract, Momentum could move it fast this week.
Remember when oil was in backwardation from 2006-2008. USO was at a all time high, amazing.
Looks like USO is about to break out of a trading box. The implied move would be $3 to $23. That would put WTI at $62-65. The best way to play it would be in oil producers that were most hit by the selloff.
Your starvation to be accepted is pathetic and the route which you take is at the very least disturbing. You are like the guy that beats his wife then tells her how much you love her.
Nothing wrong with being short, but being short oil now is just wrong. You are correct on the upside.
Oil up over 4% in overnight .
hit a high of 51.90. there is some resistance at 52, then 54 is the next target. with the dollar continuing to weaken below $97 and Yemen escalation I see a chance of breaking the 54 resistance. All the dominos are fallen in place for a decent short squeeze the next few days.
if you have not noticed yet, you are the board joke. No one is laughing at you they just feel sorry for you. There is always at least one of you on every board. The sad thing is the you are the only one who doesn't know you are the joke.
OK dude. If you want to be in the conversation at least base your opinions on something factual. Fundamental or technical analysis not that you think oil might do this or that. At least I base my opinions on using western and candle TA associated with charts.
I can't take you seriously when you base an assumption on nothing but your gut.
So, taking advice from you about trading stocks would be like Phil Ivey taking advice from you about poker. He wouldn't. He would laugh at you.
When looking at a May Wti chart, tomorrow should be interesting. The chart is either making a HS patterns form Jan to date or a double bottom. Sitting on the top of the right shoulder currently. A break above $50 tomorrow would confirm a strong chance at $54 or higher.
Agree, the Iran talks will move the market. I am just saying there is still a nice trade to be made here.
Still market will look forward and 6-12 months from now oil will more than likely be higher. The oil stocks will move ahead in anticipation of the reduction in storage at Cushing.
Yep, Bears are looking backwards instead of forwards. Barring a big move up in the dollar oil should make a run at $54.
SN really moved up big today. FYI
It appears oil investors are looking past the inventory levels as oil is rallying off that short selloff after the report. Oil needs to move above 48.33 for a close to continue the uptrend.
Should be an interesting battle between the bulls and bears today.