Two Ways To Play: A New Record for Crude
Strengthen your portfolio in good times and bad.
Royal Dutch Shell (RDS.A) said an attack over the weekend damaged one of its stations in Nigeria. The disruption caused about 164,000 barrels a day to be taken off line. Exxon Mobil's (XOM) was also affected but those facilities would likely return to the 860,000 barrels a day it normally produces.
Strong demand in Asia also continued to add to the upward pressure. Today China's State Information Center said the country likely grew 10.8% this quarter, above last quarter's rate of 10.6%. This was on top of China's approximate 5% increase in daily oil consumption the International Energy Agency reported last month.
Elsewhere, a Bloomberg survey showed OPEC oil output actually declined by 1% in March, down 320,000 barrels a day from March. A number of these factors were mentioned in a Goldman Sachs report today that predicted a "super spike" in prices to $150-$200 a barrel in the next six to 24 months.
Revisit Professor Adam Michael's Trends Affecting Oil Price.
From the Bull Pen: Those bullish can continue to play the upside in the energy vehicles. Bulls see a potential double top breakout in Transocean (RIG). Suncor (SU) is also an option, as well as Exxon Mobil.
From the Bear Cave: Some professors at the 'Ville are skeptical of this run in oil prices and are considering the ultra (2x) inverse oil and gas fund (DUG).
Have a great night!
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