Oil Price of $20 a Crude Joke?
March 26, 2015
A few months ago we provided a few charts showing the vast decline in oil in our post “Slippery Slope – Crude Oil Falls.” Since then, oil has continued it’s slippery fall to levels we haven’t seen since 2009. There is even talk of $20 oil. Is that even possible? Here is a chart showing the last 30 years of oil prices in the US.
You can see that the current prices are not without historical precedent. Crude Oil in the US traded at these levels in 2005, 2008 and 2009 most recently. However, we’re all asking the big question: WHERE IS THE BOTTOM? The savviest of investors may have been able to predict this downtrend. However, most of us are waiting for our chance to buy. Oil can’t stay this low forever, right?!
Naturally, that is a very complicated question when you
drill down to research the fundamentals. Once again, we’ve found another helpful short animated video from Bloomberg that discusses some of the data around the question of $20 oil.
There are valid reasons to be bullish and bearish. Where do you think crude oil is going? If you have an idea, we’d love to hear from you. Call your BROKER to discuss the risks in trading oil and how you might be able to profit using futures and/or options.