WisdomTree Brent Crude Oil

This morning I decided to hedge our family against the fluctuating oil price for our old heating system (as long as it is still running).

The aim is to hedge against the volatile oil price, as I am forced to buy oil exactly when the tanks are empty. This can be in a low or in a high.

For this purpose, I have calculated half the expected price for a full tank in $CRUD (+0,35%) and thus based on the WTI (West Texas Intermediate). The price of my purchased shares at [€8.3853] is a pretty good price compared to the prices in 2024.

In addition, I now invest €250 each month via a savings plan in $BRNT (+0,3%) and thus into Brent (North Sea oil fields). I hope to use this to save for the second half of the heating oil tanks. With the monthly savings rate, I hope to achieve a normal average price.

What do you think?

How do you do it with your heating oil supply?

Vicki HollubCEO of Occidental ($OXY (+0,24%) ), warns of a possible bottleneck in oil supply by the end of 2025 due to insufficient replacement reserves for crude oil ($BRNT (+0,3%) ).

It emphasizes the need for increased exploration (search for new sources of oil) and productionto meet future demand.

Currently, an oversupply keeping oil prices low, but Hollub expects a shift in the balance of supply and supply and demand by 2025.

The forecast of OPEC points to rising global demand for oil, which will lead to a supply supply deficit unless production is increased.

Citi Research ($C (+0,76%) ) has revised its Brent price forecasts ($BRNT (+0,3%) ) for 2024 and 2025 lowered due to concerns about oversupply.

Nevertheless, prices are expected to 2024 above 70 US dollars per barrel in 2024, as the global oil market is expected to remain Citi by OPEC+ is "finely balanced".

The recent events in the Red Sea could lead to an increase in the risk premium in the short term.

The forecast for 2024 envisages that OPEC+
production cuts will be maintained and only 2025 to start reducing them.

For 2025 challenges for OPEC+ expected, as despite extended production cuts a considerable surplus is looming, which could make it difficult to maintain the price of 70 US dollars per barrel for Brent.