Archives for May 2016

May 2016 - Page 8 of 30 - Money Morning - Only the News You Can Profit From

Why You Don't Need $50 Oil to Make a Profit

Earlier this spring, I talked about the importance of a stable oil pricing "floor," saying it was even more important than any gains crude might make in the meantime. 

That's because establishing a floor, a price oil won't dip below, is what actually generates profit opportunities – for everyone from Exxon Mobil and Shell to investors like you.

Now, OPEC's failure yesterday in Vienna to reach an output deal sent oil sliding again, despite around three weeks of solid gains. But later in the day, news that U.S. crude stockpiles dipped below 1.4 million barrels sent prices back up into the green for the day.

So oil is essentially treading water now. Naturally, the airwaves filled with fretting pundits, all mourning crude's inability to stay above $50, an arbitrary "ceiling" predicated more on psychology (and undeclared short positions) than any market reality.

So, let them cry into their studio mics. We're much better off ignoring them – they're looking literally in the wrong direction.

Here's why oil's price floor will make you far more profits than any ceiling ever will...