Jon Rivoli
I am the Devil.
- Joined
- Aug 3, 2003
- Posts
- 2,338
For the record, on Jan. 1 one trader put in a limit order for ONE contract of light sweet crude at a price of $100. He did it to make headlines. I'm sure he (or she) is still laughing every time someone mentions $100 oil and probably wishes they have copywrited the phrase. Adjusted for inflation oil today ($88/brl) is no more expensive than during any other oil price spike. Exon Mobile just reported an anualized profit for 2007 of $40 Billion. It is a pretty safe bet that they will invest at least some of that in developing new reserves. Within two years oil will more likely be in the neighborhood of $40/brl than $100. At that point SW will lose it's advantage from hedges which they have employed brilliantly during a very tough time. With cheaper oil hopefully everyone will make truck loads of money like back in the late 90's and we'll all get rich.
Cheers
Cheers