VBIN's oil stock thread.

[fenders53]

(06-23-2021, 08:40 AM)EricL Wrote: vbin Wrote:

Quote:Should we buy more oil Eric?

I think oil is fairly priced or perhaps even a bit overpriced at current storage levels. The market is looking forward though as storage is dropping and is expected to continue doing so, which is why price is rising.

As you know, crude price are quite volatile, and sensitive to the world economy. Another flareup in COVID shutting things down or a financial meltdown that causes another recession would push oil right back down to the $40's.

The coming quarters should be good for producers, as they should be bringing in plenty of cash flow at $70 oil. There will be a lag for some before dividends start getting boosted and shares get repurchased since there are balance sheets to repair, but if oil can stay $70+, I think those that hold should do well.

I have as much weighting (9%) as I'm comfortable with in my dividend portfolio, so I don't plan to add much more. I'm just sitting tight and watching things play out after a long, painful, wait.

I failed to believe you that supply would be successfully managed.  At this time I think the big boys have learned, and the banks will keep the fool wildcatters from wrecking their own game.  (at least this year).  OPEC+ is keeping their cool too.  They'll mess it up a little at some point but I don't think 2020 SA/Russia thing will ever happen again.  That was the worst idea ever and they paid a price.