Sunday, January 25, 2009

As Oil Rises So do these Shares

With Crude Oil currently on the rise many analysts are projecting that the volatility levels could fluctuate in the next few weeks.  Some even say that $100 dollar a barrel oil is a very likely target to end this year.  Oil is a basic commodity which everyone knows will rise.  Basic supply and demand tells us that there is not enough oil out there to satisfy the needs and wants of just China and America alone not to talk about the rest of the world.  Oil is not a smart long-term investment (Holding for longer than 5 years) though currently there is a lot of money to be made in the Industry.  With such a steep decline in Crude prices dropping from $144 a barrel to $30 in less than 6 months we could see the sides reversed.  The world is still dependent on Oil and that is not going to change in the next few years.  Yes Obama has great plans which I fully support however those are still years away before becoming effective solutions.  After doing research on the Oil and Gas industry i see great potential in 2009 with Crude prices jumping back up to over $100.  As a result I want to help you get a piece of the action so i have created a short-list of companies which are worth following.  First and foremost Andarko (APC), the largest Natural Gas supplier should have a big 2009 with roaring profits due to the higher markup of gas prices.  Next Exxon Mobile (XOM) and Valero (VLO) which continue to put up great profits.  Finally more of a international perspective Petroleo Brasileiro SA (PBR) the large Brazilian Petroleum producer.  These are all companies that should benefit the most from a rise in oil and natural gas prices as the global economy recovers.  Overall long-term oil will struggle but within the next four years its well worth holding and should continue to see great revenue/income.

3 Comments:

Anonymous said...

Oil should rise with huge profits in 2009!!!

Anonymous said...

Agreed i expect XOM and VLO to put up huge profit margins

Anonymous said...

umm am I missing something or is the author pulling our leg?

DUG the ultrashort. I thought he sounded like a long on oil, but then says play them all with a short etf?

Honestly what am I missing? Perhaps he is banking no one will read this article, but hell, I must be a loser cause I found it.