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best way to play oil rebound best way to play oil rebound

02-04-2009 , 02:26 PM
Let's hear some ideas on the ways to benefit from oil prices rising again. Let's not branch off on whether or not they will rise, but just assume for the sake of discussion that they will.

So what specific oil company or fund do you think is the best to benefit from the rise?

I nominate Suncor Energy (SU). They have huge resources that are yet to be mined in the form of oil sands, but mining them is expensive. I think it costs $35 to produce a barrel, so they will actually be posting losses this quarter for the first time in a while.
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02-04-2009 , 03:58 PM
I'm a fan of Talisman... but I don't know anything so...

Last edited by Koost; 02-04-2009 at 04:20 PM.
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02-04-2009 , 08:59 PM
If you think oil is in for a rebound near-term (and I don't), I would suggest two different strategies, one conservative the other more aggresive:

1. Conservative: the OIL etf. Pretty good way to cover your bases.

2. Aggro: FRO (Frontline). Huge divy stock that mostly tracks the price of Brent crude. Re-invest dividends and profit.

Again, I think it'll be a while before we see any movement here, but I like both these plays if you disagree.

- DoomBugle
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02-04-2009 , 10:55 PM
Well, if you're going to play it long, why not an ultra etf such as DIG?
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02-05-2009 , 01:46 AM
build a storage facility and take physical delivery. sell in futures market. hold and profit.
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02-05-2009 , 01:50 AM
Quote:
Originally Posted by stinkypete
build a storage facility and take physical delivery. sell in futures market. hold and profit.

This is why we're not going to see a bounce anytime soon. Buy a tanker fleet. It's cheaper.

Contango isn't a dance.
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