Monday, February 6, 2023
  • Contact Us
  • Terms of Use
  • Privacy Policy
  • DMCA
  • CCPA
Oil Market News Today
Advertisement
  • Home
  • Market
    • All
    • Africa
    • Europe
    • Middle East
    • Russia
    • US
    • Venezuela
    Chinese oil giant CNPC eyes BP’s $1.5bn stake in Oman gas field

    Chinese oil giant CNPC eyes BP’s $1.5bn stake in Oman gas field

    Global Ginger Essential Oil Extract Market 2020 with (COVID-19) Impact

    Global Ginger Essential Oil Extract Market 2020 with (COVID-19) Impact

    Global Ginger Essential Oil Extract Market 2020 with (COVID-19) Impact

    Global Ginger Essential Oil Extract Market 2020 with (COVID-19) Impact

    Construction of Dangote oil refinery Africa’s largest nears completion

    Construction of Dangote oil refinery Africa’s largest nears completion

    Oil rises further from 3-week lows, but headwinds loom amid pandemic

    Oil rises further from 3-week lows, but headwinds loom amid pandemic

    TC Energy says new U.S. permit to boost Keystone pipeline oil exports by

    TC Energy says new U.S. permit to boost Keystone pipeline oil exports by

    • US
    • Russia
    • Europe
    • Middle East
    • Africa
    • Venezuela
  • Oil News
  • Oil & Gas
  • Diesel
  • Oil Price
  • Politics
  • Industry
  • Companys
  • Production
  • Natural Gas
No Result
View All Result
  • Home
  • Market
    • All
    • Africa
    • Europe
    • Middle East
    • Russia
    • US
    • Venezuela
    Chinese oil giant CNPC eyes BP’s $1.5bn stake in Oman gas field

    Chinese oil giant CNPC eyes BP’s $1.5bn stake in Oman gas field

    Global Ginger Essential Oil Extract Market 2020 with (COVID-19) Impact

    Global Ginger Essential Oil Extract Market 2020 with (COVID-19) Impact

    Global Ginger Essential Oil Extract Market 2020 with (COVID-19) Impact

    Global Ginger Essential Oil Extract Market 2020 with (COVID-19) Impact

    Construction of Dangote oil refinery Africa’s largest nears completion

    Construction of Dangote oil refinery Africa’s largest nears completion

    Oil rises further from 3-week lows, but headwinds loom amid pandemic

    Oil rises further from 3-week lows, but headwinds loom amid pandemic

    TC Energy says new U.S. permit to boost Keystone pipeline oil exports by

    TC Energy says new U.S. permit to boost Keystone pipeline oil exports by

    • US
    • Russia
    • Europe
    • Middle East
    • Africa
    • Venezuela
  • Oil News
  • Oil & Gas
  • Diesel
  • Oil Price
  • Politics
  • Industry
  • Companys
  • Production
  • Natural Gas
No Result
View All Result
Oil Market News Today
No Result
View All Result
Home Market US

USO: Industry Pays Users To Take The Oil, Investors Should Stay Away

June 16, 2020
in US
USO: Industry Pays Users To Take The Oil, Investors Should Stay Away
Share on FacebookShare on Twitter


Latest Oil MArket NewsPosts

TC Energy says new U.S. permit to boost Keystone pipeline oil exports by

Trump Extracts Campaign Cash in Texas Oil Fields

Oil Slides With Expected U.S. Supply Gain Amplifying Demand Woes

Investing thesis

Today’s stock and ETF prices contemplate future EPS prospects – decisions enriched by necessary negotiations over hedging terms to protect market makers’ temporary risking of their firm capital. Risks necessary to balance buyers and sellers in multi-million-dollar block trade orders from institutions adjusting holdings in multi-billion-dollar portfolios.

Those hedging negotiations reveal knowledgeable expectations for near coming prices of the trade subject securities involved. Comparisons of the expectations and the outcomes of similar prior expectations lead frequently to profitable securities selections.

When the oil hit the reality fan

United States Oil (USO) is the commodity fund which tracks West Texas Intermediate, the usually accepted going price per barrel for oil transactions in the USA. It is shown in Figure 1 by the heavy dot in each vertical bar of the range of expected near-term oil prices. These dots and ranges are of real fund prices and expectations!

Figure 1

Used with permission

There are few businesses where overall industry profitability flows so directly from the current price of one commodity. Producers, refiners, field service companies, shippers and shipbuilders, explorers & developers, bankers and market makers, all are impacted by changes in crude prices. It is the starting (and may be the ending) point of evaluation of these securities.

As the world’s current principal source of energy, petroleum products are in contests with technical advances bound to reduce and modify its usage (nat gas to electricity vs. gasoline) in Teslas and other models.

The conversions will cover far more years than can be forecast reliably. So, using near-term forecasts which can be compared and evaluated repeatedly is an odds-on approach to an evolving longer-term investment wealth-building solution.

First, here is a look at the commodity picture of crude and natural gas where, at present, bets are best. Please see Figure 2 for the picture as it is seen by the market makers in their appraisal of what is likely at the institutional investment level.

Figure 2

Used with permission

This map locates ETF securities at the intersection of prospective price gains (green horizontal scale) and potential price drawdowns (red vertical scale) based on market maker hedging behavior to protect their necessary endangerment of firm capital as they enable volume trades. Desirable conditions are down and to the right.

The only viable commodity investment competitor at this time is WTI Crude (USO) at location [9]. Potential payoffs are high because market price risks are higher in other commodity markets. S&P 500 Index ETF (SPY) is offered as an equity-market trade-off norm.

While Figure 1’s comparisons provide a perspective on many of this group’s alternative investment candidates, several conditions contribute to reward and risk. Principal questions for both are “how likely are these to happen”, and “can their impact be improved?” Figure 3 offers some perspective as seen in the commodity market-making community:

Figure…



Read More: USO: Industry Pays Users To Take The Oil, Investors Should Stay Away

Tags: IndustryInvestorsoilPaysStayUsersUSO

Related Posts

TC Energy says new U.S. permit to boost Keystone pipeline oil exports by
US

TC Energy says new U.S. permit to boost Keystone pipeline oil exports by

by Oil Market
July 31, 2020
0

The CEO of TC Energy Corp. says the company will begin moving more oil from Western Canada into the...

Read more
Trump Extracts Campaign Cash in Texas Oil Fields
US

Trump Extracts Campaign Cash in Texas Oil Fields

by Oil Market
July 30, 2020
0

WHITE HOUSE - On a visit to Texas less than 100 days before this year’s election, U.S. President Donald...

Read more
Oil Slides With Expected U.S. Supply Gain Amplifying Demand Woes
US

Oil Slides With Expected U.S. Supply Gain Amplifying Demand Woes

by Oil Market
July 29, 2020
0

(Bloomberg) -- Oil declined as investors shifted their focus to domestic supply, with expectations for another build in already...

Read more
Lime Oil Market with Competitive Analysis, New Business Developments and
US

Lime Oil Market with Competitive Analysis, New Business Developments and

by Oil Market
July 28, 2020
0

 Lime Oil Market Overview 2020 – 2028 This has brought along several changes in This report also covers the...

Read more
Castor Oil and its Derivatives Market Size, Share Production & Consumption
US

Castor Oil and its Derivatives Market Size, Share Production & Consumption

by Oil Market
July 27, 2020
0

This Castor Oil and its Derivatives Market report includes worldwide topmost prime manufactures like (Jayant Agro, Arkema, NK Industries,...

Read more
US Gulf Region Still Struggling 10 Years After BP Oil Spill
US

US Gulf Region Still Struggling 10 Years After BP Oil Spill

by Oil Market
July 26, 2020
0

NEW ORLEANS, LOUISIANA - Ten years after the catastrophic BP oil spill in the Gulf of Mexico, Dean Blanchard...

Read more
Next Post
U.K. Offshore Oil and Gas Industry Pledges to Cut Emissions in Half Over

U.K. Offshore Oil and Gas Industry Pledges to Cut Emissions in Half Over

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Today Oil Markets

Nigeria in $1.5 bln oil prepay deal with traders Vitol, Matrix – ET

Nigeria in $1.5 bln oil prepay deal with traders Vitol, Matrix – ET

3 years ago
Oil major Shell to write down up to $22 billion of assets in second quarter

Oil major Shell to write down up to $22 billion of assets in second quarter

3 years ago
CNG outlets to reopen today as govt arranges fuel oil for power utility

MOL strikes oil, gas in Tal Block

3 years ago
Next U.S. Gulf of Mexico Lease Sale Planned for November

Next U.S. Gulf of Mexico Lease Sale Planned for November

3 years ago
Coronavirus: Antirust Oil Market Manufacturers Are Implementing New

Coronavirus: Antirust Oil Market Manufacturers Are Implementing New

3 years ago
The Oil Price Collapse Has Crushed Canada’s Crude Production | OilPrice.com

The Oil Price Collapse Has Crushed Canada’s Crude Production | OilPrice.com

3 years ago

Oil Market

Chinese oil giant CNPC eyes BP’s $1.5bn stake in Oman gas field

Chinese oil giant CNPC eyes BP’s $1.5bn stake in Oman gas field

July 31, 2020
Global Ginger Essential Oil Extract Market 2020 with (COVID-19) Impact

Global Ginger Essential Oil Extract Market 2020 with (COVID-19) Impact

July 31, 2020
Global Ginger Essential Oil Extract Market 2020 with (COVID-19) Impact

Global Ginger Essential Oil Extract Market 2020 with (COVID-19) Impact

July 31, 2020
Construction of Dangote oil refinery Africa’s largest nears completion

Construction of Dangote oil refinery Africa’s largest nears completion

July 31, 2020

Russia Oil Market

Global Ginger Essential Oil Extract Market 2020 with (COVID-19) Impact

Global Ginger Essential Oil Extract Market 2020 with (COVID-19) Impact

July 31, 2020
Global Ginger Essential Oil Extract Market 2020 with (COVID-19) Impact

Global Ginger Essential Oil Extract Market 2020 with (COVID-19) Impact

July 31, 2020
CORONAVIRUS (COVID-19) IMPACT ON Sandalwood Essential Oil Market OUTLOOK,

CORONAVIRUS (COVID-19) IMPACT ON Sandalwood Essential Oil Market OUTLOOK,

July 29, 2020
Gas, Oil and Dual-fuel Burners Market Size 2020, Global Industry Trends,

Gas, Oil and Dual-fuel Burners Market Size 2020, Global Industry Trends,

July 28, 2020

Europe Oil Market

Oil rises further from 3-week lows, but headwinds loom amid pandemic

Oil rises further from 3-week lows, but headwinds loom amid pandemic

July 31, 2020
Shell posts $18billion loss in second quarter – News for the Oil and Gas

Shell posts $18billion loss in second quarter – News for the Oil and Gas

July 30, 2020
Path to net zero: European oil majors outpace US companies on climate goals

Path to net zero: European oil majors outpace US companies on climate goals

July 29, 2020
Oil price holds near four-month high amid bearish signals – News for the

Oil price holds near four-month high amid bearish signals – News for the

July 28, 2020
  • Contact Us
  • Terms of Use
  • Privacy Policy
  • DMCA
  • CCPA

© 2020 MarketFor Oil.com

No Result
View All Result
  • Home
  • Market
    • US
    • Russia
    • Europe
    • Middle East
    • Africa
    • Venezuela
  • Oil News
  • Oil & Gas
  • Diesel
  • Oil Price
  • Politics
  • Industry
  • Companys
  • Production
  • Natural Gas

© 2020 MarketFor Oil.com