johnpaulca
12,036 posts
msg #59803
- Ignore johnpaulca |
2/19/2008 9:48:15 PM
Trendwatch:
Oil is making another run at the century mark, and the third time may be the charm. Supplies are still rather tight and worldwide demand is not slowing. While OPEC can talk down prices as much as they desire, there really is no control over demand. Some out there see $100 oil as a cap, but I can't see anything slowing down the price. Strong demand for gasoline will start to exert itself into the summer driving season. In 2007, the same arguments for lower oil were cited: increased supplies, high gas prices to deter driving, alternative fuels, hybrid vehicles...yet oil rose 50%! There is no denying the American insatiable appetite for oil....not just for their cars. What's next? I would be surprised if the next move for oil (next four months) stopped short at $125....unfathomable, I'm sure....but wasn't $100 oil just a pipedream three years ago? So, what works with higher oil? I like the integrateds, drillers and refiners...namely SUN, SU, RIG, NOV, OIH, VLO and TSO. Also, commodity stocks are likely to outperform, including the fertilizer names...such as POT, MOS, MON, AGU and CF.
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