After a disastrous couple of years which saw the oil price fall below $35 a barrel we have seen a partial recovery to the current level of $55 amid speculation that hedge funds are banking on a significant recovery. Regulatory data seems to indicate that the net long position on oil is at its highest since 2014 suggesting hedge fund managers believe the recent announcements by OPEC will result in a reduction in the current glut of oil. Read full article
I'm lighter on oil-related stocks than I was a couple of months ago - I'd been piling into them over much of the last year or so, then did a fair amount of profit taking in the last couple of months. I do still have small to medium positions in a number of them that I like though. If oil starts moving up more, I'll make $ on them. If we should see another decline, I'll start dollar cost averaging more $ into those companies.
Smaller amounts of a number of more speculative drillers, transporters, etc. More of bigger, more established drilling and exploration names - CLR, PXD, FANG, EOG, DVN, etc.I also like BPL, KMI, and other transporters. I also own some CVRR. Not currently in the huge refiners / integrated giants like CVX, XOM, or COP - although they're certainly great companies.
Sounds sensible - if you were just looking to follow the oil price then you would just buy oil futures. I guess it would only take one or two of the speculative oil stocks to hit the big time to make some good money?
