We have been used to Petrol at $1.40 + pretty regularly. The tiny ups and downs in petrol price won't really influence people's consumption (it affected mine, though). We were in the states and now Canada and it goes to show how much tax we put on our fuel compared to these two. In the U.S., we were paying 55c a litre for fuel and about 9c to a dollar in Canada. As a hyper miler, it doesn't bother me too much--- I just find it funny that everyone whinges about the price, yet do nothing to conserve to their own fuel -- they drive at high speeds, brake unnecessarily, don't maintain their cars and buy cars with poor fuel consumption. It's idiotic. I'd like to think the people on this forum don't fit into this mould and use their fuel savings to buy a kilo of silver at year's end (my yearly saving is about $500 just by changing my driving style). Merrrrrrry Christmas and to all a good night!
Well...my comment "A glut of oil comingI" was n't to my thinking of the individual savings on petrol over Xmas etc. More likely the bigger picture and how it will effect the world wide economy. Russia is selling more oil to the Chinese than the Saudis...the Saudis are not pulling back on supply, indeed they say 12 million barrels per day and with the US ban now gone the US frackers will be able to sell their oil overseas and of course the other oil producing countries in South America and Middle East etc are all in competition to a world wide economy that is slowing. The Russian's rely heavily on oil and gas for their GDP. (Tension with Turkey too) The US can "perhaps" increase their GDP with oil exports. And of course who's selling and who's being manipulated, throws another spanner in the works. Those countries that rely on oil for their GDP won't be getting as many dollars, which will effect economies (Of countries), company take-overs and a whole pile of economic and political outcomes. Precious metal often tracks oil. These really are scary times imo. :|
There has only go to be a hint of a war between Iran and Saudi Arabia and the price of oil will jump $20 overnight. Regards Errol 43
And therein lies the beauty of having a position in oil. It's dirt cheap at present, and only requires the hint of a problem to skyrocket. Not to mention that it's the commodity the world is absolutely addicted too and cannot live without. Wars haven't started over gold or any other commodity for eons.
The beauty of dirt cheap is that it can get dirtier and cheaper. Not so beautiful right now - pretty butt ugly if you ask me and getting uglier by the day.
Apart from having shares in ASX OOO, what other ways are there to have a more direct exposure to the oil price?
Basic oil company stocks are usually an effective leveraged play on the oil price if you're up for the extra risk. The smaller and/or highly indebted companies will be even more sensitive to the oil price, but I'd suggest you look at something like these :- WPL STO OSH All of them are showing 4-7% losses on todays trade. DISCLAIMER - I am not recommending you buy any of these. I am personally bearish on oil until I see signs of a bottom.
I'm still liking Senex (SXY) flat for the day despite the big sell off in the energy sector, little long-term debt and quality assets. WPL for a large capper or an ETF
Analysts are talking about the OPEC's pumping and Iran entering oil market. But, we cannot neglect the fact that though Iran stands among the countries with highest oil reserves.....they have to put a lot of money to pump up the oil enough to affect the oil prices. Brent oil price
Am holding SXY for the long term - no debt and just got a major chunk of cash in and developing gas assets as well as oil
the oil producers have huge soverign wealth funds, if their respective countries get in trouble financialy it could get entertaining if we start seeing some liquidations
Unleaded is under 1.50 per gallon here for the lowest grade. I can't remember when it was that low but it's been a while. Jim
That is about 60c AUD per litre for the non americans here. I would like to see similar prices here but even if oil goes to $1USD / barrel we would still be paying about 70c/l for fuel.
Baltic dry index is down for almost 3 years, shipping freight is low, minerals, coal, iron ore and bauxite where importing countries like China slows down. Grains slows down but local prices are high. Crude index down but aviation fuel high, air transport is high as well Container markets merged, but commodities high. Fruit market is high, yet transport is cheaper. Shipping sectors always predicting wrong. So hardly to believe and figure out.