Okay, this will be my last post about oil. My last few have been all over the place. I will start by saying I do still own both a leveraged and leveraged short ETF in oil (OILU/SCO respectively). I also own shares in Chevron.
We are all aware the main catalyst for the downward pricing in WTI crude is due to the strict COVID lockdowns in China. Had this not happened, just going to say I believe oil would have hit a ceiling of $150 probably around today.
Oil is trading around $95 right now per barrel. Personally I believe it is undervalued and by May 2022 we will easily surpass the previous high for the year (approx. $138). Therefore I sold all of my SCO and loaded up on more OILU. I will sell my OILU when oil hits $150 and buy up SCO. Good chance oil goes above $200/barrel in 2022, just will keep holding on until price destruction happens and sell when oil gets to around $60.
Last post about oil – this is a unique situation all things considered. Do not even get me started on going to the Saudis for oil (https://www.theguardian.com/commentisfree/2022/mar/16/saudi-regime-executed-boris-johnson-russian-oil). Simply put many people like me have been waiting to go on a nice long vacation since the start of COVID. I am going to Florida for the first time in years and I am not going to let another COVID wave or high oil prices stop me. Tbh I feel like most people in the USA are in the same boat.
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