how to take advantage of the low oil price?

oil is very cheap, and expected to go higher in future. how to take the advantage of the low oil price? stock price of a lot of oil companies does not relate well with oil price.

 

Buy a huge number of crude bbls now, and store it in your bunker. Next year, sell for twice the cost.

Easy peasy.

 

or futures & save yourself the hassle.

 

Here's one way!

Today in Missouri:

 

Survivalists don't believe in electronix. They want to feel the thing, so it's more real.

 

Convert it to lube to make the reaming we are all going to get in 4 months easier to take.

 

Look for a crude oil company that has lots of cash and not levered to the teeth. Shale is in big trouble. Saudi's and Russian's are going to eliminate U.S. shale. Time is on their side, not ours. Too much debt is going to sink shale oil.

Don't get sucked into options with way too high vol, but start looking at OTM LEAPS. If you find a bargain…voila!

 

Holy mother! It hasn't been that cheap here since maybe the 90s.

Why buy for one year when you can buy for several years into the future. Who knows how long the recession will last. Wait for sub $20/bbl. Although there is talk of courting Saudi Arabia from OPEC to join a US-Saudi alliance to form the biggest oil producing pact in the world.

 

Buy it, Hedge it, eventually find the bottom.

 

BP
RDS.A
CVX
PSX
Solid balance sheets
Stay away from shale, small/mid cap, MLP’s, and XLE (since it’s 44% XOM and CVX).