Wednesday, April 28, 2010

What goes up in price when (crude) oil prices fall??

Hey there,


from an economic point of view; what goes usually up in value, when oil prices drop? Or in other words; what would you have to invest in if you believed that oil prices would drop...What goes up in price when (crude) oil prices fall??
The easiest way is to short-sell crude futures.





Correlation is 100%.





Edit: Refinery stocks don't go up when crude prices fall. If anything, they also fall. But if they are being valued like ';crack spread'; options, then their value is based on the difference between the crude and refined products.What goes up in price when (crude) oil prices fall??
probably the dollar. Because demand is not going to significantly drop enough lower the price of oil. Only thing I can see dropping the price of oil would be a strong dollar.
sadly crude oil dropped over 4 dollars a barrel this week and from Tuesday to today the gas prices where i am went up 6 cents to $4.32 for regular. So to answer when oil drop gas still goes up =(
Refinery stocks.

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