VBIN's oil stock thread.

[Dividendwayfarer]

I doubt myself many times but added XOM all the way down. XOM now surpasses ABBV to become my largest holding. It’s amazing they recover so quickly.

[fenders53]

(03-08-2021, 11:45 AM)Dividendwayfarer Wrote: I doubt myself many times but added XOM all the way down. XOM now surpasses ABBV to become my largest holding. It’s amazing they recover so quickly.

Generally it's not "if" they recover eventually, but the speed and extent a commodity based stock over runs both up and down is often surprising.  As much hell as I give VBIN and Eric, I can understand you guys holding the majors like XOM.  The spec oil stocks that might go 3X not so much.  I just don't have the stomach for those as BK is a real possibility when things turn.  I'm not sure anything illustrates fear and greed in the markets like a commodity based stock.  It rivals small tech.  A few months or years and the cycle repeats.  I think you guys are in for a good summer at least.

[vbin]

I added more leaps today on ET, SUNCOR etc

[vbin]

US selling some of the oil from reserve considering high oil prices. The proceeds will be deposited to treasuries.

[fenders53]

(03-09-2021, 03:51 PM)vbin Wrote: US selling some of the oil from reserve considering high oil prices. The proceeds will be deposited to treasuries.

Selling back to the US commercial market?  Not a horrible idea as I suppose their basis is crazy low if they bought it around the sub zero sale?

[vbin]

Sold small xle position in a tax free account. Still have rest of the oil.
Now the difficult part, where to invest this cash.

[vbin]

https://seekingalpha.com/news/3673418-us...k-api-says drawdown in oil

[EricL]

More indications that the emperor of OPEC has no clothes...

Quote:Saudi crude inventories dropped another 2.81 mmbbls in December. New low level from before 2004. No matter what their production, one thing is for sure. Their inventory continues to drop at a steady rate.
 
I continue to wonder about their reserve production capacity. It won't matter until it does.

[vbin]

Can you share the link @EricL

[EricL]

(03-18-2021, 02:20 PM)vbin Wrote: Can you share the link @EricL

https://www.investorvillage.com/groups.a...d=21819635

[fenders53]

I have read we are back to near very normal demand for March timeframe. Suppliers have done a very good job of providing a soft landing after the over-supply fiasco a year ago. I thought it would be much more choppy as we came out of pandemic.

[fenders53]

And I am about ready to sell an XOM or CVX put or two. I don't want to jump in too early but I don't see much risk of any serious dip from here.