Well I never imagined I would see something like this... but there it is... the price for crude oil is in the negatives.
Tied in with that is GUSH... which is still selling for around $25.
NORMALLY, GUSH should move up and down with the oil and gas producer index it’s based on. And that index should rise and fall with the fortunes of the companies that make up that index.
The current price of oil suggest the index and GUSH should have crashed today.
But they didn’t.
And I think what’s going on is the only thing that is holding it up is the promise from the US government to pay companies to keep oil in the ground. I suspect some thoughts, dreams, hopes and prayers are also holding it up.
Here’s the problem... I don’t trust Trump or his administration to keep their promises... or keep them in a way that they don’t screw over anyone.
I believe the share price for GUSH as well as oil has entered a strange Twilight Zone where they have become detached from each other I’m not sure what’s gonna happen next.
So I pulled out and made a small profit.
Based on what I believe I know (and I could absolutely be wrong), there is another stock price crash coming for US oil and gas producers.
And in the future, people will be like “Shale oil? What’s that?”
On the bright side, I expect gasoline and diesel to get even cheaper.