I think it's time to start buying oil
. We are seeing the market start to show some signs of finding support, as price has been fairly rangebound over the past week -- and even managed to include some bullish
pin bars. Fundamentally, I think it's a good value buy as well, as I believe current costs are below production costs for many companies, and significant ongoing production is still needed in spite of the current supply glut we face. With that said, I think the bear market might last a bit longer, so I'm leaving the bulk of my capital available for if price falls major support at the low $30s.
, is my ETF
of choice here as it tracks WTI oil
over a longer-term basis (it is not just the nearest futures
month contract, but a portfolio of futures
month contracts spread out over the next 12 months).
See our video on choosing the right oil