Monday, January 12, 2015

Crude oil worst probably over, buying tanker stocks

There's an abundance of Crude out there. Its always bidding for storage. We now have people buying tankers to put crude oil, store oil. That may help in the long run. Most of the bearish move is probably behind us. At-least WTI has begun to gain relative to Brent and that's is the first sign that the downward move is behind us.

I think what we see right now is going to get even further out. I think we are going to continue to unwind the contango. More people are going to do more buying of Tankers.  This is the first time I've ventured in. I want to buy Tanker stocks for the first time in a while. Its not a bet on Crude itself, its a bet simply on the carrying charge.