oil prices - does no-one notice these rising?

  1. 3,353 Posts.
    There seems to be very little discussion about rising oil prices and the effect of those companies (or 'cumpa-neeza' a la Peter Garrett) who are in production, esp the junior oilers.

    All the Cooper gang are in production, COE, STU, BPT.

    Also other junior oilers, PPP, KRZ, ARQ just to mention a few, I am sure there are loads of others.

    The price is above US$30 a barrel for the last few weeks now. The qrtly reports for these companies (maybe more in Q3 rather than Q2) are going to look quite healthy. And the increased operational cashflow gives them the scope to explore more without draining away cash reserves etc.

    Surely this oil price is a god send. And, unfortunately (and I would prefer it to be otherwise for the sake of the people who will suffer), the rag heads are still very very p1ssed off with the Yanks and their allies and there is definitely the potential for way more terrorism. They have sleeping cells everywhere, just waiting to be activated. If GWB thinks he is going to get Iraq back to 3M barrels a day to suit his purposes, well sorry matee, ain't going to happen in a hurry. And if you think Opec is going to lie down and let the oil price fall into the low 20s, well not likely either matee.

    The whole Arab world has a fixation that the Yanks are trying to control the global oil market, and they will do their damnest to keep oil prices higher. And now GWB is pointing the finger at Iran. Well, that would surely be too much to carry after the Iraq debacle.

    In my opinion, one's portfolio should remain overweight in oil (due to the above) and any exposure to NA gas suppliers (due to the gas shortages coming there).
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