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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Tommaso who wrote (13153)	10/8/2004 9:27:09 PM
From: Wyätt Gwyön	Read Replies (1) \| Respond to of 116555

everybody is still pretty focused on the spot price, but that's not the most important thing for the equities--for the long-term, analysts are assuming MUCH lower average prices, and energy companies are still benchmarking to the low 20s for project feasibility. maybe there is a big correction coming in the near term, i don't know. but the energy futures are still heavily backwardated ($16 discount on DEC 2010 crude compared to spot), and COTs have not been frothy. energy equities are still very underowned despite their being the one bright spot this year. long-term, i think we are very early in the energy bull market.