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$1B in federal funds didn't increase oil well cleanups in Alberta, study suggests
Main Post: $1B in federal funds didn't increase oil well cleanups in Alberta, study suggests
Top Comment:
No shit.
the norwegian sovereign oil fund surpasses 13 billion NOK
Main Post: the norwegian sovereign oil fund surpasses 13 billion NOK
Top Comment:
you mean 13 trillion. 13000 billion.
Beginner investors and the price of oil...
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Since there's been a number of posts over the last few weeks around the low price of oil, and USO specifically, this might be a worthwhile read:
"Traders on Robinhood and SoFi Invest flocked to buy the United States Oil exchange-traded fund, or USO, this week as its price plummeted below $3. But many got in for the wrong reasons.
Retail investors mistakenly thought this fund was a proxy for the “spot,” or cash, price of oil, and bought in as its price plummeted. It isn’t: The purpose of the ETF is to track the front-month oil futures contract. And after changing its structure multiple times in the past one week, the fund couldn’t even do that correctly. (...)
“A low price handle is always a retail trap,” Davi told CNBC in a phone interview. “This ETF is something you want to buy with gloves on, and hold for a short period of time — it’s a trading vehicle, not a long-term investment.”"
What the article sadly only touches in passing is that the majority of investors who fell for USO will have been in the under-40 age bracket, and will have acted on "investment advice" they found on Youtube.
And for a bit of perspective: https://www.cnbc.com/2020/04/23/short-sellers-make-nearly-300-million-betting-against-retail-investors-favorite-oil-fund.html
"As smaller investors pile into the risky and troubled United States Oil Fund, hedge funds are taking the other side of that trade and making a lot of money.
Over the last two months, as the fund — which trades under the ticker USO — plunged 75%, those who bet against it by short selling pocketed hundreds of millions of dollars."
Top Comment:
It's almost as if investing is more than low price = buy
The amount of people who bought qnd wouldn't know what the etf actually holds would blow your mind
USO (United States Oil Fund LP ETF) --> possible downside in the long term?
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Hello everyone,
I am starting to build a position on $USO. Question: what can go wrong in the long term at this kind of prices? Once the economy is back on track (even by 2021) the possible shortage of supply and the increase of demand will create a shock to the price. Am I wrong? Am I right?
Thanks to everyone who will contribute to this post!
Top Comment:
Hi Russ,
I would hold off until more states begin to open up their lockdowns. The downside could be significant with less oil usage and the growing supply. If you want to open a long position, consider a married put leap strategy.
Norway's pension fund is now worth $1,000,000,000,000
Main Post: Norway's pension fund is now worth $1,000,000,000,000
Top Comment:
If you split this money on the 5.2 million living in Norway they all get roughly $200,000 each.. thats a lot of money.
Edit: spelling
OIL ETF - what a mess!
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Glad I didn't try using OIL as a vehicle to speculate on oil price rebounds. I noticed a few days ago that the price of OIL was not dropping in line with FEB futures... looks like today is the day of reckoning though. I realize the roll of futures can mess with the price of this ETF, but how in the world did the price get so far off that its getting a 13% correction today while oil prices rebound 5%? Why didnt the market see this coming (ie what changed today)?
Top Comment: