crude oil down

Discussion in 'Markets & Economies' started by clear, Nov 27, 2014.

  1. PrettyPrettyShinyShiny

    PrettyPrettyShinyShiny Well-Known Member

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    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!
     
  2. Holdfast

    Holdfast Well-Known Member Silver Stacker

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    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. :|
     
  3. clear

    clear Well-Known Member

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    $ 34.93 now
     
  4. errol43

    errol43 New Member Silver Stacker

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    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
     
  5. SilverDJ

    SilverDJ Well-Known Member

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    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.
     
  6. clear

    clear Well-Known Member

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  7. Ronnie 666

    Ronnie 666 Well-Known Member Silver Stacker

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    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.
     
  8. ParanoidAndroid

    ParanoidAndroid Well-Known Member

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    Apart from having shares in ASX OOO, what other ways are there to have a more direct exposure to the oil price?
     
  9. BuggedOut

    BuggedOut Well-Known Member Silver Stacker

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    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.
     
  10. Caput Lupinum

    Caput Lupinum Well-Known Member Silver Stacker

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    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
     
  11. Caput Lupinum

    Caput Lupinum Well-Known Member Silver Stacker

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    You could also trade options, CFD futures or the CAD/USD currency pair
     
  12. clear

    clear Well-Known Member

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  13. aleks

    aleks Well-Known Member Silver Stacker

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    should see some bids at $0.01
     
  14. stackingstudious

    stackingstudious New Member

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    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
     
  15. trew

    trew Active Member Silver Stacker

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    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
     
  16. aleks

    aleks Well-Known Member Silver Stacker

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    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
     
  17. Jim4silver

    Jim4silver Well-Known Member

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    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
     
  18. Court Jester

    Court Jester Well-Known Member Silver Stacker

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    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.
     
  19. JNS

    JNS Active Member Silver Stacker

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    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.
     
  20. clear

    clear Well-Known Member

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