Echo To All

Winners and Losers from Oil Contango

"...money pouring into oil ETFs from schmuck retail investors..."

they don't really seem like schmucks today. Why insult so many readers by calling them schmucks instead of providing a solution or alternative?

since I was in USO, u called me a schmuck (and the many others in the name)... yet ur simplified recommendation of buy oil stocks makes u the schmuck today. uso is +4%, while most oil stocks are +1 (w/the exception of PBR).

(anyway... i'm ready for the 10 thumbs down from the reads who don't think their schmucks because they agree with you)

Global Financial Crisis Makes Oil a Great Hedge

I disagree. Peak oil is real, and so long as usage outstrips supply (or is close to it) oil will remain high.

We have entered a pretty bad economic step, yet oil is still trading above 80. There is a reason for the high price. Previous down turns would have brought crude to the 20s. The fact that oil is remaining high, in a real global crisis, is no accident.

I would be very careful shorting oil here (and i had no problem shorting oil in the high 130s/140s due to anticipation of the current hick up we are now in).

Peak oil is real, and the only thing that will merit lower usage of oil is when alternatives are truly being used. Right now they are not. (wind, solar, nuclear... all for electric generation. crude is not used for electric generation, and the battery powered car will not make a dent in the use of oil for at least 5-10yrs.)

I would be cautious shorting crude here.