Etfs Brent Discussion Threads

[eric gardener] 15/7/2010 14:02

Slightly stronger pound not helping here,

Does anyone know if there is a sterling based oil ETF?

[eric gardener] 06/7/2010 13:10

could oilb see 50 from here?

[bigtbigt] 17/3/2009 21:04

Losses due to contango have averaged out at ~1-1.5% per year. Bigger losses are incurred when the market is, or is expected to be, rising - i.e., when it matters less.

It's all detailed in the prospectus

[limbs] 04/3/2009 00:03

I've read through the history of posts and am still a little confused about losses from being in contango - if these are 10%/year, then we're talking

[andrewbaker] 18/2/2009 20:20

One should not invest in anything one does not understand. Thinking you know something is not the same as actually knowing, and I read a lot of comments on investment websites that make it obvious that many people simply don't know what they are doing. Shame is, when it goes wrong, in many cases everyone is to blame but the investor himself.

[dreamsurfer141] 18/2/2009 19:46

This makes for an interesting read if your thinking about "investing" in oil...



You could end up being contangoed...

[andrewbaker] 13/2/2009 13:42

desi99-

There isn't one. Oil is a trade not an investment.

[desi99] 13/2/2009 07:49

which is a good oil etf to park your money for 1-2 years ?

[alun rm] 05/2/2009 12:02

From oil-price.net:

As we enter 2009 the oil landscape has reversed dramatically from a year ago. The price of oil is lower than production costs and new exploration projects are being cancelled. China flush with cash is currently buying all the oil it can get its hands on to pump into its strategic reserves. Once arrogant OPEC countries are willing to sell oil at any price to fund government programs and prevent political instability.
One constant however is the depletion of major oil fields, worse than predicted at 9.1% year over year as we close 2008. It's a matter of when not if the economy recovers and when it does, expect a strong bounce back in the price of oil.

[alun rm] 05/2/2009 11:38

From the Herald Tribune:

The drop in prices prompted some oil companies to delay or reduce planned investments in new energy reserves because it made them less potentially lucrative. In October, Shell postponed a decision on the next phase of a Canadian oil sands project, and in November The Canadian Association of Petroleum Producers cut its forecast 20 percent for how much companies would invest during the next five years.

Large oil companies including Exxon Mobil, Shell, ConocoPhillips and Total have all reported declining profits or losses in the fourth quarter as the price of oil dropped to the lowest level in four years in December.

BP said an oil price of about $60 a barrel was "appropriate" because it would allow the company to invest in oil production projects to guarantee supplies once demand recovered. A barrel of oil traded at $40.49 on Tuesday afternoon.

------------------------

I can't help but feel that if oil prices stay under $50 for more than a year then investment will be slashed and future production levels will suffer. If there isn't enough supply down the line, then prices must rise. The problem of course is that the time lag (from profit being invested and then the oil flowing) is so long that we will probably see serious supply constraints pushing prices above $100 again.

Clearly the way that oil is produced and priced is flawed. The markets are too short term, whilst the business model is very much long term.

Ultimately what it means is that investors that have the courage to buy in when prices are low should be rewarded in the long term.

[alun rm] 03/2/2009 10:51

Hello rasta!

I have opened a small long on oil for two reasons. Firstly, I wanted to hedge my shorts a little and thought that any pick up in confidence is likely to impact positively upon oil prices. Also, since oil is priced in US$ any weakening of sterling is likely to offer some value here.

If oil does weaken (which is may well) then I feel comfortable holding it, since the one thing we can be sure of in this volatile world we now inhabit is that eventually the price of oil will rise!

But don't get me wrong, I am shorting the indices.

[rastapastamasta] 02/2/2009 11:24

Alun RM
Hello Mate - surprised to find you in here. Last time we spoke, you thought oil might slide lower. Why have you changed your opinion?
I am in CRUD. Almost identical performance to OILB. Wonder what differences are for holders?
Paul

[tumshie11] 25/1/2009 16:33

Thanks Cassini

[cassini] 24/1/2009 13:06

tumshie,

I'm no expert but I thought PHGP and PHSP had physical gold and silver. OILB does not have oil - it has futures contracts. Different kettle of fish. DYOR.

[the other kevin] 22/1/2009 15:13

Tipped on the IC website yesterday for a long hold.

[jcxjr100] 21/1/2009 10:05

Sb,
ADVFN- priced $.

XJR100

[sandbank] 21/1/2009 08:21

Can someone please explain why this is priced at 36p or thereabouts on ADVFN but 2231p on Barclays Stockbrokers? Could it be the ADVFN price is actually in dollars not pounds?

[steve73] 20/1/2009 07:36

just remember, they're currently priced a significant percentage below actual brent, and then it is this percentage (not the absolute) difference that will be maintained even if oil increases.
The differential is ever widening as it incorporates lots of various costs involved in trading.
Lots of good info in the much earlier posts to better explain what I'm trying to tell you.

[alun rm] 15/1/2009 11:42

I've just bought some of these ETFs based on a hunch that oil will come back over the coming weeks. I also like the fact that this is priced in $, so any weakness in sterling will add to gains here.

[1nf3rn0] 13/12/2008 12:01

Is this a good time to open along position on OILB?
------------------------------------------------------------
In July oil hit a record price of $147 per barrel. It has since fallen by 67%. But the International Energy Agency (IEA) forecasts that demand will grow by 0.5% next year, despite the global economic slowdown. That's because developing economies like India and China are still growing.

In addition, the markets are currently pricing in a substantial drop in demand for oil from developed countries. But the IEA predicts that demand won't fall that much. Again, this should support the oil price.

At the same time, the OPEC oil exporters' cartel is getting ready to slash production to boost the price. They will meet in Oran, Algeria on December 17th. Just yesterday the cartel's president, Chakib Khelil, warned that "the Oran meeting will decide a severe production cut to stabilise the oil market."

And it's not just OPEC cutting oil production. Russia's president says his country may join OPEC in reducing output to boost prices. That is big news. Because Russia is the world's biggest energy exporter, and this is the first time it is openly talking about coordinating oil cuts with OPEC.

With demand holding up and major oil cuts looming, the recent drop in the oil price just can't be justified. And now the market is catching on to it.

The price of oil surged by 10% yesterday to $47.98. Our forecast is that it could easily double by the end of next year.

Buying into oil is the first way to position yourself to profit from the rebound in commodities prices.

[gordonbrown] 16/7/2008 15:59

looks like the oil bubble is deflating...

[protean] 28/6/2008 16:05

Nice moves up in oil while the stockmarket tumbles. Some of the commodities are rising too. Perhaps people taking their money out of stocks and looking for better growth opportunities elsewhere.

The site has a few good ideas.

[bountyhunter] 27/6/2008 16:40

if you have a link I'm happy to add it