To: Jenna who wrote (29827 ) 3/26/1999 10:07:00 PM From: Spartex Read Replies (2) | Respond to
RE: Oils. Yeah, I'm kicking myself the day I was watching RIG near 20, DO near 20 1/4, and both up 50% in roughly 3 weeks. I didn't have any loose change to pick them up, and the sentiment by many was that the OPEC deal was the usual (everyone would cheat eventually), which meant-- buy signal. But a 50% move in 3 weeks. Thats a real biggy for oils. At this point I feel most of the run has taken place. Maybe another 15-20% by the fall is my guesstimate. They were just so cheap 3 weeks ago, almost like most techs last Oct. during the bottom of the nasdaq selloff. My father-in-law who works in the business thinks that oil can become very strong (over $30/barrell) within 5 years as depletion may exceed production. Today the price was already up to $16 bucks. Five years may seem a long ways off, but not a bad part of a portfolio that one can sleep on. He said most of the easy oil (wells) have been discovered and extracted. The rest of it is going to be harder to remove.
