Oil: $60 or $20 per barrel near term?

Discussion in 'The Stock Market (NYSE, NASDAQ and AMEX)' started by Rig16, Feb 9, 2015.

  1. Rig16

    Rig16 New Member

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    We've seen a slight run up in oil and related stocks, but now Citi and others have come out claiming that $20 oil is coming soon.

    What do you think?

    Rig
     
  2. JRW-910

    JRW-910 Administrator Staff Member Moderator

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    Well, if today was any indication ... oil could be heading to $20 within a month or two.

    Fine by me... love putting cheap gas in my car!

    -JRW
     
  3. crazyK

    crazyK Member Original Member

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    Yeah, I save more on gasoline than I make investing in energy stocks & non-energy stocks benefit, too.
     
  4. Dave Rathbun

    Dave Rathbun Original Creator Original Member

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  5. crazyK

    crazyK Member Original Member

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    I get the driving more - I don't get the truck buying.
     
  6. JRW-910

    JRW-910 Administrator Staff Member Moderator

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    I guess the thinking is that cheap gas will have people buying V8 trucks rather then hybrid and electric cars. IMO gas prices are more psychological then anything else. It just feels better to fill my tank for $20 then $40. You notice that more then the extra dollar per time at the grocery store... which probably costs you more in the long run.

    -JRW
     
  7. Dave Rathbun

    Dave Rathbun Original Creator Original Member

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    The big deal when oil was over $100 a barrel was that everything was going up because everything has to be transported from Point A to Point B to sell it. Now that gas is cheap, are businesses actually reducing prices? Or are they like airlines and just using the lower cost to improve their bottom line?
     
  8. JRW-910

    JRW-910 Administrator Staff Member Moderator

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    I won't hold my breath for that. I know for sure that airline tickets haven't gone down... and it still costs an arm and leg to ship anything via UPS. Those savings will never be passed on though it could help come earnings time for companies who use a lot of oil/gas.

    -JRW