Monday, May 01, 2006
OIL MARCHES TO $74
With Iran sabre-rattling and Nigerian rebels cutting off supply, I anticipate crude to trade up to $80 by June-- on its way to $100 by Jan. 2007.
The fact remains, world economies are expanding at a pace not seen since 1969. At the same time, supply is tight and war threatens frequent major disruptions.
Because of these facts, I continue to buy oil stocks, such as UPL, TOT and CEO.
Also, due to the upcoming hurricane season in the U.S., I have taken long positions in the worst performing commodity, natural gas. It is my belief that natural gas is at least 50% undervalued.
As warmer weather approaches, expect natural gas to become front page news again, as U.S. utilities struggle to keep up with power demand.
The fact remains, world economies are expanding at a pace not seen since 1969. At the same time, supply is tight and war threatens frequent major disruptions.
Because of these facts, I continue to buy oil stocks, such as UPL, TOT and CEO.
Also, due to the upcoming hurricane season in the U.S., I have taken long positions in the worst performing commodity, natural gas. It is my belief that natural gas is at least 50% undervalued.
As warmer weather approaches, expect natural gas to become front page news again, as U.S. utilities struggle to keep up with power demand.
