Forecasting the price of oil has become the hot topic heading into 2016. There seems to be little consensus on direction, though. Just as many forecasts call for $20 oil as for $50 per barrel. There have been record inflows into energy ETFs as investors try to time a bottom. In fact, Bloomberg reports “a wide range of investors collectively spent about $24 billion over the past 18 months trying — and failing — to call a bottom in oil.” While other traders franticly try to catch a falling knife, I’ve uncovered an alternative play that is all… Read More
Forecasting the price of oil has become the hot topic heading into 2016. There seems to be little consensus on direction, though. Just as many forecasts call for $20 oil as for $50 per barrel. There have been record inflows into energy ETFs as investors try to time a bottom. In fact, Bloomberg reports “a wide range of investors collectively spent about $24 billion over the past 18 months trying — and failing — to call a bottom in oil.” While other traders franticly try to catch a falling knife, I’ve uncovered an alternative play that is all but guaranteed to rally if oil rebounds, but should also do well while we wait. Higher Oil Someday… Despite the difficulty in timing a bottom, several factors point to an eventual rebound in oil prices. #-ad_banner-# More than $68 billion was slashed from capital spending across the energy industry in North America alone this year, with a survey by Barclays showing it could be cut by another 10% to 15% next year. Globally, the bank found capital expenditures were cut by 20% this… Read More