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Gold/Mining/Energy : Canadian Oil & Gas Companies -- Ignore unavailable to you. Want to Upgrade?

To: The Fix who wrote (8184)	4/25/2001 10:04:41 AM
From: stan_hughes	Respond to of 24927

Fix - In the context of its price vis-a-vis other refinered products, it should decline as the demand naturally slackens for the reason you suggest, in addition to having equilibrium restored on the production capacity front. CA prices might stay firm because of legislated requirements, but I don't know how to profit from that other than to own Unocal. FWIW I also think that this coming summer's unleaded price levels could result in a certain degree of consumer backlash that might lead the refiners to run with tighter margins, lest they get Washington on their backs. I could be wrong but I believe the risk is there, as almost everyone has to buy gasoline, making it a populist cause that can turn votes. If John Q Public thinks he's being gouged by the refiners rather than helping the good ol' USA do battle with the "Evil OPEC Empire", it will difficult to make much higher prices stick without stimulating a consumer boycott. Sorry to go off on a political tangent but it's tough to handicap oil without engaging in that debate to some degree. I prefer the NG play, it's more of a pure numbers game.