I Never Buy Commodities but Oil just hit $55

[GreatGazoo]

I might have to start because that price won't last. Steps will be (and are being) taken to boost it back above $60. Aside from how long it will take to go to $62+ I don't see any risk at all.

I can't trade options. What is the best way to buy ? USO? Another ETF?

https://www.marketwatch.com/investing/fund/uso?mod=mw_quote_switch

[VMA131Marine]

1. Most U.S. fracking operations are not profitable

At $55/barrel.

They need $60+

[walkingman]

2. I personally wish it would go to $0...Living it Texas, I see, smell, and drink

the results of this industry. I know that is not realistic but we have alternatives and it seems that we are sticking our head in the sand when it comes to the damage it is doing to not only politically but with regard to health, the natural world, and the entire planet.

I do wish you well with your investments....good luck!

[GreatGazoo]

6. Worked next to oil wells for a while in the 1980s

Doesn't smell like health.

I avoided investing in everything for quite a while. The entire market is based on extraction of wealth and resources. Buying index funds is a way avoid having to look at "how the sausage is made" but when we own SPY or QQQ we own Microsoft, FaceBook, Google and other monopolies.

I have some stock in nuclear energy, IMSR, and hope that it can be done safely. Oil companies hate nuclear. Wind, solar and hydro have made good strides but data centers need way too much power.

With my luck, me buying oil will send it to $0. A loss I would gladly live with.

[IbogaProject]

3. Very dangerous to try and catch a falling knife

Three issues with commodities. One they are an asset with carrying costs, that oil sits somewhere. Yes some futures are cashed out and don't settle with delivery but that is priced into the market anyways. Two there is a paradox with falling oil prices, the firms cant easily stop the flow and struggle with the drive to sell more to cover falling revenue. Third the demand fir oil has most likely peaked and now every year will see demand slowly decline. This is before the bid ask friction (expense) and relatively thin markets on individual contracts.

[ret5hd]

4. i sometimes ask people...

“do ya’ think there was a reason god buried that shit about a mile deep? maybe we ain’t supposed to mess with it.”

[IbogaProject]

5. I am very anti oil

I was just trying to keep this focus on the actual market issues along with now forever declining demand. The age of oil has peaked, though sadly it will malinger for awhike like a drunk proppoed up at the bar.

[GreatGazoo]

7. Finally got one right.

Bet on Trump doing something stupid. Didn't have to wait very long:

https://www.cnbc.com/2025/12/17/trump-orders-blockade-of-sanctioned-venezuelan-oil-tankers.html

Bought USO at $66.20