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Gold/Mining/Energy : Strictly: Drilling and oil-field services
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To: upanddown who wrote (12717)2/24/1998 2:30:00 PM
From: RGinPG  Read Replies (1) of 95453
 
Do you know what WTI oil is? I don't, I'm asking, but it generally runs about $2 PB lower than the NYMEX light sweet crude quoted in the more recent charts on that webpage. Which means if we get down to $14.5 PB or so we will be at lows not seen since 1978. Of course, these are not inflation adjusted numbers. Actually a Light Sweet crude price of $20 today is equivalent to the lows reached in 1986 of $14 Light sweet crude ($12 WTI) seen on the chart (assuming inflation of 3% per annum).

Being pretty much a contrarian, I see this at good news. That these companies can remain profitable even while oil is at historic low prices (inflation adjusted prices anyway) reflects on the excellent ability to maintain profitability. Of course, I'm sure there is a limit to this ability. However, oil cannot stay at these prices for much longer (can it?).

Want to here something else that may sound silly? I think it is a good thing for these stocks that the Iraqi situation resolves peacefully. I'd like to see these stocks increase in value to match their fundamentals, not because of temporary fears of war and destruction of reserves. We'll get much less volatility this way, and the stocks will move up on their own merit.
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