Is time to get into Oil sector? Ethan, Oldman, Teeka?
Ethan, Oldman as we discussed before, the oil stocks (as welll as oil service) pulled back quite significantly from its all time high, It's already in oversold territory. Teeka mentioned in the Tycoon report that we should buy oil when it dip.
So do you think now is the time? If you are an contrarian investor? Short term, intermedia, or long term?
Best Answer
119 points
Noam answered one year ago …
With global demand increasing , almost all major oilfields in decline (Ghawar, Cantarell etc) and no major cheap oil discoveries in recent years, the direction for oil is clearly up.
If you think there is any demand destruction in the US, think again. Wherever you live, have you noticed more vacant parking spaces, less traffic jams etc?? I havn't. With petrol selling at about $9 a gallon in Europe, demand in the US will hardly change at $4 a gallon.
Answers
193 points
whiteshadow204 answered one year ago …
I've been thinking the same thing. Great question.
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Oldman answered one year ago …
I can't recommend an entry point, nor a particular company, but oil-services will probably do well as long as exploration is continuing, and shale & sand need to be retorted or fractured,+ pipelines to be laid. I'd look at the OIH holdings and sek companies that pay dividends...other possibilities in a taxable account are the Oil&Gas royalty trusts and pipeline companies that are publicly traded poartnerships.
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