As you can see from this chart of West Texas Intermediate Crude Oil vs some major energy industry funds, when oil goes South, it drags everybody with it.
As Charlie Belida used to say, "When the paddy wagon comes along, it takes the good girls along with the bad."
Now, oil is primed for an oversold bounce here. Do you believe this is the bottom? Or is this a chance to get out of some losing positions at higher prices? And perhaps add some positions with short-oil exposure?
In $10 Trigger Alert, I've been recommending stocks that should do well as oil prices go lower (because energy is a major input for them OR they make more money when consumers have more money). What you do is up to you. Be careful.
Good luck and good trades.
UPDATE: Some supporting articles
Storing Oil At Sea Is About Futures Prices, Not Crude Oil Prices Rebounding
Some of the major oil trading firms are hiring oil tankers for up to 12 months.
Record natural gas production makes for bearish outlook
Dry natural gas production, according to the EIA, was at a record high in October for the eighth consecutive month.
According to the EIA’s projections, 2015 will be the tenth consecutive year of production gains, thanks to booming production from shale plays, especially the Marcellus.
US Oil production Continues to Rise
Last week, crude production increased to 9.13 MMbbls per day from 9.12 MMbbls per day the week before. In its December Short-Term Energy Outlook (or STEO), the EIA reported that output will hit 9.3 MMbbls per day in 2015, which is 700,000 barrels above the 2014 level.
Are energy MLPs finally feeling the heat of falling commodity prices?