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Personal Finance and Investing

IbogaProject

(5,566 posts)

3. Very dangerous to try and catch a falling knife

Reply to GreatGazoo (Original post)

Tue Dec 16, 2025, 12:29 PM

Dec 16

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.

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Highlight:

I Never Buy Commodities but Oil just hit $55 [View all] GreatGazoo Dec 16 OP

Most U.S. fracking operations are not profitable VMA131Marine Dec 16 #1

I personally wish it would go to $0...Living it Texas, I see, smell, and drink walkingman Dec 16 #2

Worked next to oil wells for a while in the 1980s GreatGazoo Dec 16 #6

Very dangerous to try and catch a falling knife IbogaProject Dec 16 #3

i sometimes ask people... ret5hd Dec 16 #4

I am very anti oil IbogaProject Dec 16 #5

Finally got one right. GreatGazoo Dec 17 #7