Today I closed my short position in Oil, through the exchange traded fund DNO.
It’s interesting to note that Oil is now at its lowest price in a year and also back to pre-OPEC production cuts. The US rig count (primarily shale wells) is also back to May 2015 levels when West Texas Intermediate was trading at $60/barrel (today’s price is $45.39).
I think Oil is likely to move lower; however, I’ve been playing with this particular position way too long and it’s now prudent to lock in a double digit profit. Thus, the difference between opinion and position.
Oil (Energy Sector) is a key factor in the economy…what’s the price of Oil telling you about where the stock market is headed?