I do not normally boost someone else’s net contributions just because I think the author is cool. Had he not written about oil stocks I probably wouldn’t either, but it is the summer. Because I was getting alittle burnt out on all the serious blogging I have done for 5 years, I gave myself permission to post whatever I wanted too and boringly I have stuck to energy conservation, the residential market and all things environmental. So today is a really “what the hell” kinda day. Enjoy.
Time To Slide Into Oil Stocks
??By Mike Nadel
The last time I filled my car’s tank, I paid less than $3 a gallon. As my wife will attest, I was more than a little giddy. “Two-ninety-seven!?!? You gotta be kidding me!!! This is incredible!!!” Hey, we all have to find life’s little thrills wherever we can, right?
The price of crude oil, the source of gasoline, is determined by numerous factors: supply and demand, the Middle East unrest, natural and unnatural disasters, Wall Street speculators, economies in the U.S., Europe and emerging markets, etc.
Crude oil reached $110 per barrel on February 24 and was still over $100 per barrel two months later. It has been on a fairly steady decline since, hitting $80 per barrel on June 22 – its lowest level in two years – before rebounding into the mid-80s. So what’s next?
I certainly am no oil-price-trend expert… and even if I were, I wouldn’t listen to myself. Wasn’t it just a few months ago that alleged experts were predicting $5 gas by Memorial Day and maybe even $6 by the Fourth of July? Still, when it comes to forecasting oil prices, “Up” usually is a reasonable guess – especially after it has been down.
Go there and read. More tomorrow.