Wednesday, January 10, 2007
Time to buy oil
Time to buy oil
Today brought an 18 month low on the price of oil, now at $55 per barrel. As of right now we have just about 6 full months until summer comes, along with peak driving season and increased automobile sales.
The time is now folks, at $55 per barrel buying oil is virtually risk free. Summer brings the hurricanes and other weather woes that put the economy, through the price of oil, on its knees. To be quite frank, oil will not ever again fall through $50 per barrel, it just won’t happen.
Today’s selloff of oil by institutions means nothing because as soon as this oil hits the market, it is used up. The only hurt to the price of oil is slight and temporary and can be corrected by unions such as OPEC.
OPEC can and will keep oil above $50 per barrel. Its been both proven in theory and in reality when in 2006 oil peaked at $70 per barrel that consumers would pay whatever it takes for the gooey black stuff.