mplaut

Best Investments for Rising Oil

See this article:

"USO All the Drops and None of the Gains"

seekingalpha.com/artic...

for a well argued presentation of the long-term inadvisedness of holding USO and other commodity ETFs.

Although you might do okay for a while, the steady month-to-month loss in the rollovers is not good for your investment health. He also explains how sharp traders take advantage of the rollovers and make them worse.

USO started off at the same value as crude and is now about a third of its value.

Marc Faber, Jim Rogers and Boone Pickens - Bullish on Oil

Buying a solid MLP live LINE or EVEP gives exposure to rising oil prices (LINE is hedged about 30% with Puts that gives them the upside of any rises) while paying a more than 15% distribution in the meantime. These are more suitable for long-term exposure.

If you can time the jump in crude, by all means jump into USO right before the jump.

Oil Stocks: Where Can You Find Black Gold?

Many have commented about the fact that the new sources of oil cited by Michael66 have high breakeven points.

In truth, the oil that lies under North and South Dakota (the Bakken formation) has been known for a long time. What allowed it to be NEWLY classified as a discovery is 1] new technology (horizontal drilling and fracturing) and 2] the higher prices which made it economic to recover.