Even more right under your nose is the lack of slowdown in oil production and the slowing of demand ... those are proven facts. Hoping for instability and war is not a good trading strategy.
Problem is you assume that you just "startup an oil well". Not that easy, have to find workers who have moved on to other jobs and the oil company has to determine if the cost to startup the well is worth it. Not cheap to bring oil wells back online, think regulations and safety reviews and such. With the oil companies being drained of cash with low prices it makes it even harder to startup old wells. And not just old wells US companies stop exploration before shutting down existing wells. So without new wells waiting, if existing ones dry up than they are left without reserves to pump from ... so then the Saudis and others step in.
"when refineries shut in October or March for maintenance" ... refineries convert oil to gasoline and other fuels. Not much effect on the raw oil being furiously pumped from the ground to the point of massive oversupply driving the price lower and lower.
When he does nothing, oil will collapse again. But not going higher, just stopped from diving today on the inventory report.
out momentarily .. .you are welcome.
Wish that were the case but just a lull in the action ... I think we trend down towards the close, probably starting just before 3:00pm. Oil having a struggle to keep its head up
Questions for those who use them ... which all should ... what do you set your trailing stop #$%$ or % ?? And with this being a fast mover what do your set your $ or % at??
always hit or miss, i think you may have a buy opportunity today below $1.19 ... i'm hoping to take a position somewhere in the lower 1's.
I don't see any catalyst for it in the next few months ... watching closely and may take profits today on a decent move ... possibly around $1.30
Not to worry , in a few weeks you'll be telling us how awesome you were to buy all those shares below 1.00. Hold strong and good luck!!
That is only right if the 140% happens in 1 day. With compounding, angietheapple is more correct. When oil gets back into bull mode, UWTI will see moves that far exceed the decay ... If UWTI goes up 300% and it takes 5 months, i can live with the 50% decay , if it really is, and make profits of 250%.
So I guess buying DWTI on 8/12/2013 (2 years ago) at 27.04 and having todays price of $165 was bad because of all the holding costs????? That's a little over 500% return for holding it two years. Yes DWTI acts the same as UWTI but is inverse and doing well because oil is falling. When oils turns and goes back into Bull mode we could see the same thing from UWTI over the next couple years.