Just a few months ago, crude oil was selling at $100 per barrel. How is it that companies and countries can still make money selling oil at these prices? To understand this we need to understand how much it cost to produce a barrel of crude.
Now it doesn't make sense to go out there an buy a a couple hundred of barrels of crude oil and then hoard it in your garage until the price goes up. The easier way is to trade derivatives. In other words, financial instruments that will track the price of crude oil, but are liquid enough to be traded in the open market. The easiest way to do this is to buy exchange-traded funds more specifically the Proshares Ultra DJ-UBS Crude Oil ("UCO").
Technically speaking, crude oil prices have bounced from the low in early February. For the time being prices seem to have broken the downward spiraling trend. Whether or not this continues is dependent on whether or not it is able to hold its 20 day moving average ("DMA") and also climb over the 50 DMA. Whereby the 50 DMA has served as strong resistance back in late September/early October.