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Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: XoFruitCake who wrote (41359)	4/4/2005 3:05:38 PM
From: jim_p	Read Replies (1) \| Respond to of 206114

If I did I'd be rich, but as we all know it's difficult to say. One driving factor is China's need to clean up it's banking problems before it's admitted to the WTO in 2006. This should start to show up as a negative on their economy soon. Oil could go a lot higher before it goes lower, but I think we are entering a period where positive news on oil may be a negative for oil stocks just as positive news on the economy is a negative for the stock market since it will only led to higher interest rates. The same is true for oil, higher oil prices will only result in lower economic activity which will result in lower oil prices sooner. Jim

To: XoFruitCake who wrote (41359)	4/4/2005 3:59:09 PM
From: Brian	Respond to of 206114

How long has the forward futures, all the way to 2011, been over $50 per bbl? The cure for high oil prices is high oil prices! Only very recently have oil companies been able to sell oil for the next 5 years and be guaranteed to make a profit. Sure it may not be possible to increase capacity in US, but I think that OPEC could certainly add capacity with the proper financial incentives! I think they will start to increase drilling and we will have an oil glut again, as we always do. But it can't happen until almost everyone thinks high oil prices are here to stay. just my opinion though!