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I never would want to take advantage of pain at the pump. When oil was so cheap not even 2 years ago and in fact turned negative, differnet story and I owuld have loved to buy.
However it does not work that way. Without actually buying physical barrels and storing them, you cannot take advantage of flash gains in price of barrel of crude oil.
For instance when oil was $10 in April 2020, I think I could invest $50K and when oil got to $30, that is triple so my $50K should turn into $150K right and still very cheap and not taking advantage of pain at the pump. Except no, Oil funds do not work that way due to contango and backwardation so no would never work that way sadly. Unless I could buy $50K with of barrels and at $10 and then turn them into $150K when oil hit $30. Except the cost to store them who knows how much that would eat up.
Even if I could get flash gains, I would not buy now as we have seen this rodeo many times and even if oil skyrockets to $200 a barrel, I would not feel good about taking advantage of pain at the pump. Same if oil was $70 and jumped to $140.
Different animal if oil is $30 and jumps to $60 or $70 which is more fair and no pain at pump. But oil funds due to contango and backwardation make it moot point anyways as well as practicality of storing $10Ks worth physical barrels of oil.
I feel same way about homes. If homes had crashed in price so move in ready starter homes of 1000 to 1300 square feet in good neighborhoods were $60K instead of $130K back in 2010-2013, then investing in them is not depriving others as price was already so low. But homes never got that low, so investing in them was taking advantage of others when prices skyrocketed past faire 2010-2013 fair values.
No one in either the U.S. or Europe is very much handling Ural oil.
But the U.S. Treasury Dept has clarified that the U.S. oil industry can handle Ural oil until a date in June. However, Congress is considering an explicit ban on Ural oil.
Well, WTI is now approaching its ending-calendar-day Friday price
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I almost purchased XLE or an energy sector fund in late 2020 to early 2021. Nice dividend yield and so undervalued. However I did not pull the trigger as the negative PE ratios of so many those companies made me a bit fearful. Chevron and Exxon looked good (Especially Chevron, though Exxon appeared to be fine but with headwinds at the time) but they were only 2 companies and I was not brave enough to buy just 2 companies with lots of money.
Plus I have heard energy sector stocks were lower even with surging oil prices because of stupid climate activists intentionally shunning them as investments made me fearful.
Though I should have but hindsight is 2020. But I would not invest in them now. They are high, but still lower than last time oil was this high. And once supply starts coming to market again oil prices will fall a lot. Though with efficiency, the oil companies will still do well as long as oil does not fall like it did in 2020 and only falls to $50 to $60 and not much lower. But still the stocks these days trade with price of oil because it is all based on emotion regardless of other factors it seems.
I've been accumulating USOI for a little over a year in various accounts, mostly reinvesting the dividends. Value is up over 40% as of today. I just bought another 65 shares using dividends (about 20% yield) received in cash recently.
what is the latest now with Iran?
Oil is not going away,besides all the ICE on the road,what about airplanes ,they need jet fuel and what about other goods we make?
with everything else going up,why should oil stay flat?
No one complains gold is so high,or worse diamond is worthless
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