Moon, I think the rise in oil this time will be temporary. There will be a secular rise in energy prices in a couple of years, but the OPEC scam won't stick. First, they cheat. Second, by raising the price, they encourage marginal production to come back on stream. This stuff will take 3-6 months to work out, but I have sold nearly all of my oil stocks.
FLC is a zero/one company. It is going to $25 or $1. Great operating co., lousy financial condition. I like it, but only as a rank speculation.
Higher oil prices will kill the already weak Asian recovery. There are exceptions, of course. Indonesia produces lots of oil. But, then, they are also in pretty bad shape even with higher oil prices. |
