oil forecast 2004

  1. 9,081 Posts.
    With crude oil currently over $35 (US) a barrell this extract from the "Yamamoto" Forecast 14/1/04) from the Gold Eagle web site is worth considering:


    Petroleum prices remain stubbornly high. Energy-related shares rallied recently. However, the overall performance of these securities indicates lower prices for the commodity. The market seems to believe supply is going to exceed demand, especially when Iraq returns to production.

    Others point to the potential demand as the global economy rebounds, namely China. In a worldwide recovery, the requirements for oil go up. Will the present supply of energy be adequate to fulfill the need, even in a strong business environment? The oil bulls don't think so.

    We feel the surprise will be how oil prices continue to stay elevated. The discrepancy between the depressed prices of the oil shares and the high mark-up of the commodity could bring an opportunity for the astute investor. We're closely monitoring the scenario. If things fall into place, we'll pull this trigger
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