4Mon·

Oil values

Do you find oil values like $OXY (+0.15%) and $CNQ (+0.41%) currently interesting for an additional purchase?

I deliberately mentioned them because I am considering buying more :)

26 Comments

Soprano@Soprano

4Mon

Oil should not be underestimated for the next 10 years. Could be a top pick right now. Buying US or Far East Oil is not the worst thing you can do right now, even if I prefer other sectors.

•

Silas W.@DynasticGrind

4Mon

For me personally: No. But only because I already have quite a lot of oil stocks in my portfolio and bought them relatively cheaply (most of BP just over €2.50, now my largest position with a weighting of over 10%) and in my opinion oil has run hot and is currently at a cyclical high... However, oil companies are no longer just oil companies (with BP you have to assume that this will remain the case in the near future), but also diversified energy suppliers. What is important is staying power (as with everything else) but I am of the opinion that things will go down again before then. In my experience, oil is often unfairly punished and the demand for crude oil in industrialized nations (especially outside Western and Central Europe) shows no sign of declining any time soon. Oil may lose some of its importance as a fuel in the next 30 years, but as a lubricant, in chemicals, cosmetics, etc... hardly at all. As natural gas and oil support each other to a certain extent (and are generally produced together), demand for the agricultural sector should also remain a significant pillar, as there is currently no alternative to ammonia-based artificial fertilizers that is just as effective. Demand is increasing here, especially in the Far East, and since ammonia is primarily produced from natural gas using the Haber process, which in turn is offered by the same companies as crude oil, I do not see growth coming to a halt in the long(!) term. Nevertheless, I believe that these companies are much more cyclical than one might initially assume and that now may not be the best time to enter... I may be wrong, of course.

•

View all 4 further answers