Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

Two Ways To Play: A New Record for Crude


Strengthen your portfolio in good times and bad.

Bloomberg reports a number of factors helped push crude oil to a record price of $122.73 a barrel today in New York. Tensions overseas, along with supply and demand concerns, kept prices elevated in today's session.

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!
No positions in stocks mentioned.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.

Featured Videos