Supply and demand coupled with fear and greed make for some very volatile crude prices. It will be interesting to see if OPEC actually comes through with the production cuts. Once you get used to $140 a barrel cash flow its hard to take a 55% price cut and then have to cut your production.
We shall see.
"The OPEC cartel ordered a cut in oil production of at least 1.5 million barrels a day. Despite the statement, a benchmark price dropped below $63 a barrel." By NELSON SCHWARTZ and JAD MOUAWAD, NY TIMES
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2 comments:
I am one of the ones that strongly believe that we are "overselling" rigth now, and we will se oil in the 90-100 by Januruay & Febraury, although I have a friend that trades options on the NYMEX and he strongly believe that Oil will be around 30 and 40 by December due to the global crisis. We will see.
I hope we are "overselling" oil as I live in a province that is definitely "long" oil.
I am too as I own one direct producer and some oil and gas service companies.
Need less to say the old stock portfolio has taken a bit of a beating.
Of course everyone's has, as it doesn't matter what you own, they are all going down.
Your investing time frame is under review right now I'm sure. Stock analysts used to say you needed a 3 - 5 year time frame if you were going to own equities.
I'm pretty sure now that has been revised to a 6 - 10 year time frame.
It always seems worse than it is when it’s happening, and it always seems like it wasn't that bad 5 years later.
I hope.
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