How could you make money with oil prices which are expected to remain bearish?
Hello. It's still Mike and during this troubling period with the coronavirus and the oil crash, oil prices are low and oil forecasts are bearish at the moment. I have come across information that may be useful to you and others. I am NOT an investment professional, but I saw something that deserves to be highlighted. I'm just making a short question and answer format, with a few links and a video you can watch, just my thoughts on the situation.
What's going on in the oil market?
Basically, because of the Covid 19 virus, people stay at home and do not travel as much, business is closed, people work less, millions of people are unemployed or lay off. So, with the huge amount of cars that are not on the road, you can guess that the oil supply has thrown the roof off! and prices have plummeted.
How does this affect oil stocks?
I think and from what I see, most oil stocks are also shrinking. Like petroleum retailers, gas stations, refineries. I read an article that said the price of wholesale gas was 12 cents in the Midwest. So you would think that with prices so low, people would be filling up with petrol at petrol stations, but unfortunately most are not, due to the overall situation.
Is there a way to make money with this situation?
My honest opinion, I really don't know You can't really make quick money in the market if you buy, maybe if you put options on the USO or some of the major players market, because oil prices are falling and oil price forecasts seem to be bearish, very bearish. You can also short-circuit airline inventory, gas station inventory, clothing retailer inventory and the like.
Is there an oil industry subsector that is making money?
Yes, there seems to be … I just watched a video of This Guy Accroding for him. He put over 30K in a stock An oil storage company called Nordic American Tanker and a few other similar companies. But my question is how long will the storage need last? Sources say oil is running out, forcing oil storage companies to increase storage rates for large companies – as this article says – but as major refineries and production decline – , it will also be necessary to store the oil. I'm not an expert or anything like that, but it's just my thoughts on the situation. I still think investing is globally risky and I really hate losing money, especially on the stock market, but this sector of the oil industry could have legs for a while, so I think I'll check it out. With over 40 million people out of work (I really don't know the numbers), that translates into billions of gallons of oil that are used for nothing, cars that are not on the road, planes that do not leave the runway, etc., etc. in American but WORLDWIDE … Wow! what a profound impact this virus has had.
Will oil prices go back up to $ 40 to $ 50 again?
I think that will be the case, but for how long I really do not know .. some experts predict that the virus will be back in winter … and even STRONGER! So experts say the foreclosure could last more than 18 months. Hell, I saw an article today saying that oil would cost $ 100 and more. Plus, Trump starts over with Iran Sooo¦well, we'll see. But really, it could take a few years to fully recover and I think Trump is making a stupid move. I hope sinister forces have not had access to his big head, like Anakin Skywalker or something like that. Sure, you know it could be devastating for our country to enter another stupid war, but you know that anything can happen with this President
Do you think American companies will fully recover from the virus and this oil crash?
Yes and no … I think some cases will close permanently. Some companies will have to reduce their size to pay off debts and the like. Some businesses will surprisingly thrive and make money, grow, etc. A good part of the cases were already on edge before this virus struck and now they are down for the count .. all cold and it is tragic to witness it in our country, but to On the other hand, I have seen regular and average people come up with ideas and make a good piece of change .. like some people actually make a homemade mask, sell it on ebay, amazon, facebook and the like. His people like them are stepping forward in this time of crisis, but I think we are headed for a major recession and even a slight depression, and I could be wrong. This could end in hyperinflationary DEPRESSION, and if it does, the amount of suffering will be close to apocalyptic. So let us pray that this is not the case, but for each crisis, there are opportunities. I have also seen many advertisements promoting mask-type products appear here and there. People also benefit from market fluctuations (stock market), but it is a little too much for me that the SPY (S&P 500) increases by 500 points one day, then by 700 the following day.
Ok enough rant..So..What do you really say?
Well, is it worth investing in the company mentioned in the video: Why I just put $ 30,000 in this tanker stock! Big ROI OPP suggests ?, I think I could give it a shot, BUT with the money I can afford to LOSE. This is the way I think at the moment. You and I know that 30K is a huge sum for the average joe, but hey this guy seems confident, so I guess he agrees with that. And you? Leave your messages below if you have ideas on this economy, oil prices, stocks, etc.
This post was edited by SpenceCompany: Yesterday, 11:02 p.m.