Don't count oil out yet

[Andy62]

http://www.cnbc.com/id/27294721

[John Peterson]

Hey Gordon,

Is it my imagination, or is OPEC really scared to death that we will start our own drilling and leave them in the dust. (Pun fully intended)If that is not the case then what could be driving down the cost of oil? And why is OPEC slashing prices?


---John Peterson

[MikeNY]

Great atricle Gordon!!

John that is a great question! Gordon has been thinking that the Saudi's and OPEC are smart enough to manipulate the price of Oil to stop developement of alternitve resources. I would not be surprised to see the Arabs buying the US & Canada Coal Fields with thier profits. Canada and the US are each the Saudi Arabia of Coal. Then you add in the Canadian Oil Sands that are being developed and producing oil, plus the US Oil Sands and US & Canadian Oil Shale and it makes you wonder.

[Bruno]

Opec may be lowering prices so that the US doesn't really get serious about alternative fuels. The prices are lowered just enough so that oil sand extraction, bio diesel and ethanol doesn't become attractive.

Wind, solar, clean coal, the oil in Montana, nuclear, Alaskan oil, offshore, bio diesel, natural gas. Are all to be explored just like we should have done in the 1970's.

80% of home heating oil is produced in the US and Canada is our biggest importer of oil.

[Andy62]

Some analysts believe that OPEC is lowering the price of oil for political reasons, but not related to the US. They believe that because Russia's economy is largely based on oil and Russia's economy was booming when oil prices were rising that when Russia started going after Georgia and other Muslim Countries that OPEC decided to fight back. OPEC lowered the price of oil to retaliate in protection of their brother Muslins and as a result Russia's Economy has gone into the tank.

[gruntbrain]

XLE & OIH may be good buys at the current depressed levels

[Huskerdarren]

is also cutting back supply. There's a worldwide slowdown in oil demand which will continue for the next 12 to 24 months. The price at the pump doesn't reflect what it should be. We should be closer to $2 a gallon.

[MikeNY]

The Canadian Oil Sands are still profitable, they extract natural gas on site to cook off the oil and if my memory is correct need $25 a barrel oil in order to be profitable. But the Canadian Oil Sands is a rare occurance. Oil Shale is much more expensive to extract and the technology in infancy.

[Andy62]

A very well respected investment advisor Dr Stephen Leeb is predicting that starting next year the price of oil will start to go through the ceiling..

[MikeNY]

Gordon as soon as this recession is over in 2010 I expect Oil and Commodities to start a second bull market.

[MikeNY]

Commodities surge after Fed cuts interest rates article


http://news.moneycentral.msn.com/provider/providerarticle.aspx?feed=AP&date=20081029&id=5772543

[gruntbrain]

Hedge players should look at positions/options in DIG & DUG