If WTI does not hold $40, it looks like little support before $35. I like low prices but that low hurts a lot of people. You know OPEC is not going to do anything until it plunges below $40. They always wait too long to act. Shale will dry up quick.
I bought too early at $9.25, but I have a feeling someone is going to make a ton of money on USO if they load up @ less than $8.75.
We had bullish inventory reports past few weeks, yet price barely moved. Imagine if we get an unexpected build. No position.
Valvoline employee and I don't see this hurricane messing with any Valvoline instant oil change centers in Texas. No power no problem we can manually pump oil and manually write invoices. Can't do tires but can still can operate. Corporate won't let any store close early or not open unless it's a holiday.
Most of the biased shorts looking at production and inventories. They refuse to see an increase in demand. It will catch up with them. If you understand the E&P sector, there is also natural depletion, geopolitical and lack of discovery of new oil fields. WTI will rise.
"OPEC may take extraordinary measures to balance the market" - markets not impressed. OPEC should talk less, do more
$USO and $UNG are both is b s boiler room operators scam mode. Ignore their crap. Short oil and natgas is the trade. Cheers.
Fourth Largest Gap Down Ever for Crude Oil ETF (USO) Mon, Apr 20, 2020 Crude oil is the story of the day today. The cause for recent declines in crude have been a result of surging supplies on flat-lining demand while people around the globe follow stay at home orders. Front month futures (May 2020) facing expiration tomorrow are down over 40% while contracts further out on the curve are also down substantially though by not nearly as much. That brings front month crude oil to around the same levels as early 1999/late 1998 and the summer of 1986. The United States Oil Fund (USO) has about 80% of its portfolio in what will be the new current front month futures (June 2020) after rolling a couple of weeks ago with the rest of the portfolio in the second month contracts (July 2020). Despite record inflows, the fund will face headwinds going forward as a result of the costs of rolling with crude oil in the steepest contango on record as we discussed in our Morning Lineup. That also comes as today's declines brought USO to its lowest levels on record, breaching support from late March. Going back to the USO's inception in 2006, its gap down of 10.93% at today's open was the fourth largest opening gap down on record. As for the three larger gaps, those have all come since the beginning of March as shown in the chart and inlaid chart below. Prior to the current ongoing saga of dramatic price swings, there was never a double-digit gap down with the next largest being a 9.24% decline on October 24th of 2008. Over the past three times that USO gapped down 10% or more since March, the ETF averaged a 4% decline from open to close.
