WTIC gained 12.3% overnight. There will be continuing pressure for mean reversion of the GOR in my opinion.
For the record I was buying oil at a GOR of 47.
It is currently around 42.
I am not saying oil has hit its bottom price, what I am saying is that oil below 27 per barrel is good long term buying.
I am hoping for under 20 per barrel, but you cant always get what you want.
I believe we are seeing a new trading range form, and testing the lower limits of that new trading range,
Between 1980 and 2000 oil was ranging between approximately 10 and 40 per barrel. I wonder what the new range will be.
I think it unlikely that oil will return to that range for the long term.
Even if it does in the worst case scenario, I am certain we will see prices hit 40 periodically, in which case current buying levels will still see a profit.
All it comes down to is not going overboard with position weightings. Anyone considering adding energy to their portfolio must be considering some of the better energy stocks out there.
As for gold it is on track for having a great quarter. I remain long silver and platinum for continued exposure to any developing precious metal bull market.
