Market forecast:
Stock Market Today read more
Stock Market this Week read more
Below my transactions (older than 1 month) from group J: info
A total of three purchases from 3/26/2020. The oil price (Brent) has risen above $ 40 today. Although the lockdowns are lifted, the economic damage remains large. It will be a long time before the demand for oil returns to its pre-corona crisis level. As a result, the oil price has become even more dependent on production restrictions. American shale oil companies often need a price (WTI) of at least $ 50. With $ 40 for Brent, the major oil-producing countries can already make a profit. This can ensure that efforts will be made to prevent WTI oil from rising well above $ 40. Because pushing the American shale oil sector out of the market will still be a goal. OPEC can therefore decide to increase production a little again at an even higher oil price. Reason to grab the profit with a nice return in a relatively short time.
Mission accomplished.
ETF provider: WisdomTree
Ticker: OILBP
ISIN: GB00B0CTWC01
Currency: Euro
Exchange: Euronext Parijs
Due to insufficient storage capacity, the future that expires today has fallen sharply. Storage tanks are full. But the oil tankers at sea are also full. This ensures that there are almost no more transport options. Previously, power over the oil price lay with OPEC and Russia. With production restrictions, the price could be controlled. That power over the oil price has now shifted to oil companies and oil traders who own all that excess oil. Because by renting almost all oil tankers for storage, they have become the master of transport. OPEC may want to supply the oil so cheaply. If oil tankers are already full or unavailable, no one can come and collect that cheap oil. Almost no supply options. Then the owners of the oil in storage determine the price. Oil companies and traders who obviously want to make a profit on their very cheaply bought oil. Oil prices may remain under pressure in the very short term. But if more and more lockdowns are relaxed within a few weeks and the demand for oil increases immediately, the price will rise considerably.
ETF provider: ETF Securities
The low oil price is a disaster for the US shale oil industry. That is why Trump has already spoken to Putin. Plans are being worked out to get the oil price higher. In addition, when the worst with the coronavirus is over, the demand for oil will return to the old level.
The oil price is affected by 2 things. Demand drop due to the corona virus. Russia that could not agree with OPEC on production cuts. Demand will increase once the coronavirus is over. But as long as there is no production restriction, the oil price can remain low for a while. Nevertheless, the pressure from producing countries will increase to restore the oil price a little higher. It may take a while. But if there is a production-limiting deal, the oil price can rise sharply again. A little patience will be necessary with this ETF.
ETF provider: ETF Securities (WisdomTree)
Ticker: PHAG
ISIN: JE00B1VS3333
Exchange: Euronext Amsterdam
The physical demand for silver is very high. Investors are selling silver derivatives through emergency sales and to close gaps elsewhere. That temporarily depresses the price. Due to the actions of central banks, as a result of which there is nowhere any interest on savings, gold and silver are going to rise sharply.