Who is the biggest importer of oil in the world? You guessed it.
And with the market willing to accept that Gyna's crazy stimulus will help their economy, one can only deduce that oil should also run as the economy should be projected for more growth etc.
OXY, Buffet's biggest holding, is lower than his cost average. This should be a layup as market projects more oil demand from china. We also have geopolitical issues, ie, Israel trying to start WWIII. I think oil is a layup
OXY 55 C 10/18 OXY 5C C 10/4
XLE 58 C 10/4
Did you miss China? Oil is next
byu/novabull23 inwallstreetbets
Posted by novabull23
36 Comments
Dude: It has been like 2 days since China offered some window dressing stimulus that isn’t going to sustainably move the needle for them.
China has systemic problems that aren’t going to be solved by what amounts to a sneeze of cash.
China is continuing to aggressively move away from fossil fuels including oil as it is a well known strategic weakness that the USN is primed and ready to disrupt if Taiwan goes hot.
So even if China is off to the races it won’t affect oil much and certainly not for long.
Take your modest wins and gtfo.
Chinas doing electric. You want coal and nuclear
Chinese stocks didn’t go up because the market thinks the stimulus is going to help their economy.
Chinese stocks went up because the market values their currency that much less because of the way the stimulus is being rolled out.
Need to be able to seperate changes in value in the stocks for the underlying denominator.
Guess someone is ignoring that SA and opec just said they are going forward with big increase in production…..
Seems like it’s just about time for them to go after US production again like they did shale that drove prices under 40 and bankrupted a lot of them.
Don’t forget Middle East unrest. Nasrallah may have been killed today and Israel threatening a ground invasion.
2000 shares of UCO. 50k in RTX and LMT shares
Watch Iran…the strait of hormuz…
china already gets oil at a discount from russia.. unless saudi is giving larger discount, they don’t need another supplier. 🤷♂️
yay for inflation!!!
This is not accurate, there is an oil related rift between Saudi Arabia and the U.S ongoing currently.
The Saudis wanted to lower their production to set prices at $100 per barrel, but have since decided against it.
I am not too well read on this, but do some DD, should be a macro event.
Uranium is the play
The China run is just getting started.
But I agree someone bought 4.5m in OXY 50c 11/15 right before close today
I could use some ‘Gyna this weekend.
Try iron ore silly
This is a playbook from like 2003.
I think your DD is bunk. But you’re right about OXY for all the wrong reasons. You’ll do well on that trade.
If we get a recession , oil will fall harder than anything so watch out.
I just bought into oxy yesterday. Problem with these type of companies is they don’t have control over their own margins. If oil demand and the price stay high this has to be a big winner in the next 12 months.
China is rapidly becoming electrified. Bye bye oil.
Oil is starting to die a very long slow death.
China is pumping out electric cars and its dominating the market. There will be less oil in demand.
Could be. But I stopped buying gas 2 years ago. I hear EVs are cheaper than gas cars in China. Are they really still buying gasoline? If so, for how long? I guess short term profit is nice but long term I don’t see Oil as a buy and hold.
Completely wrong. Oil will crater over the next year and rise in 2026
So China should be suffering from some nasty inflation in 2-3 years, right?
As someone who works in energy commodity price forecasting, I really really cannot overstate the extent to which this is priced in.
I agree on the OXY play but you aren’t giving yourself enough time
Confirmed.
My whole family works in oil industry(2 brothers and father). I assure you, oil is not next. Also don’t get funny and decide you wanna trade the widowmaker nat gas trade cause lol just trust me, it’s not next.
China banks might need much more money. Big trouble in China
Since we are producing the most oil ever in our history we control a lot of the market now. OPEC sees that and is going to compete with us. Oil prices are headed down.
Just my worthless advice. I made a lot of money during covid off of oil. I made my own O&G etf comprised of drillers, service providers, upstream, midstream and down stream companies that I had working knowledge of.
It was not a quick play, but it paid off very well.
Don’t expect to buy anything now and be able to make a handsome profit quickly unless a possible war breaks out in the Middle East
It’s copper but that’s too boring for y’all
Neah, I wouldn’t touch oil with a barge pole. The world is going to electrify. China is rapidly doing so, but the rest of the world will follow even at a slower pace.
Russia’s oil is going to China whilst the rest of Europe has to deal with the loss of Russian oil with other energy.
The supply of US oil competing with OPEC.
Both supply and demand factors means oil is fucked. You can deffo make money on short term fluctuations but the future is not oil. It is EV and leading the way is BYD and CATL.
I am all in on BYD. Their EV is going global apart from NA.
10/4 is too soon.. push those to early Nov.
I am in on this play, but waiting for the port strike to boil over this weekend into Monday; buying in EOD Monday. If payrolls (JOLTS, ADP, NFP) come in hot, best believe rates rally, dollar strengthens and oil pops.
Someone is 4 years too late
Oil chads rise up 