I remember lining up for petrol as a child with my parents. I think we could only buy petrol on certain days of the week depending on car registration or something, might have been alphabetical based on your licence.
When we first went to the States, petrol was something like $0.30/gallon. Incredibly cheap. Prices sky-rocketed.
Currently, after the ‘peak-oil’ scare, oil is again [seemingly] in plentiful supply. Electric cars have established enough of a toe-hold to eventually replace petrol based cars, although it will take a while yet. Thus one of the safest trades, the oil trade, is now questionable.
Its not going to totally fall apart, but buying oil producers as an investment will become much harder than it has been. Previously you could buy the big national producers and ride out any slumps. Can you still do this?
I’m going to have a look at the various ETF’s in the space just to see what’s on offer and whether there are any compelling valuations that might overcome the decidedly questionable longevity of the trade now.