energy stocks - the next bull?

  1. 9,081 Posts.
    Energy stocks (+ precious metals) are my pick for 2004

    " Phil Flynn
    Thursday December 4, 2003

    All OPEC wants is a price band of gold! OPEC learned the fallacy of fair price because a falling dollar takes some of the shine off their price band. The new world order in oil means OPEC will do whatever it can to push up the price of oil to compensate for the 15% drop in the value of the dollar. We have blazing, red hot economies in the US, China and India and consuming countries will gladly pay a higher price for energy. The re-inflating, after decades of deflation of commodity prices, is alive and well. We are beginning a new era of substantially higher commodity prices. OPEC says goodbye to the old price band and hello to inflation. A fair price for oil that stood at $20.00 for so long, is a fallacy. We will become comfortable with $30.00 per barrel as a fair price eventually but again, this will be a fallacy of fair price. The fair price of anything is what the free markets determine it to be.

    Yesterday's oil market had a weak start due to the Dept of Energy weekly stocks reports. They showed distillates were up 2.8 million barrels and an increase of 3.4 MB in unleaded. But by the end of the day, the market cared most about the crude oil drop of 4.80 million barrels.

    Natural gas continued to soar. Early attempts to test the old support were bought up quick and the fundamentals continue to build bullish momentum. Natural gas is on fire!

    India's economy is on fire as well! The Financial Times has a front page story about India titled, "On the Edge of Explosive Growth". They have grown 7% and gaining momentum!"
 
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