the problem is that you have a lot of traders buying and selling based on emotion and not logic. ever heard of rumor of a buy out, yeah, price goes sky high. so if there is some kind of a conflict in Saudi Arabia, let's say ISIS blew up an oil reserve, you will see this stock and other oil relate stocks go up.
what that means is the mini ice age has already started, by this winter, the weather will get a bit colder, and the cold will last much longer, by the 10th year, you will see a very short summer, much shorter than the current Alaska's short summer, and when the ice age is in its full effect, only natural gas is the stock to own.
last month, Saudi special force had uncovered and disrupted a plan by ISIS to blow up two of Saudi's oil storage facilities, reported by MShariq news. Due to the sensitive information, the name of the 2 oil storage facilities were not mentioned in the report.
All I can say from this report is that, if the incident did occurred, what do you think the price of oil will be like? and all the stocks that are related to the oil industry?
OBL tried to blow up the twin towers several times, actually carried out the plan twice, and finally did it on the 2nd try, and that was thousand of miles away, what chance do the terrorists have in a land right next to them?
So should I own oil stock, sure, why not, it's so cheap now, own a little bit won't make a dent in my portfolio even if it drops another 75%, and I hope not.