Two Ways To Play: Crude Won't Quit
Strengthen your portfolio in good times and bad.
Morgan Stanley economist Richard Berner cited supply constraints "against the backdrop of still-strong global demand." Berner acknowledged that high prices could curb demand in the developed economies, but that these supply constraints could easily take Brent crude to $150 a barrel.
The statement echoes similar comments recently made by Goldman Sachs Analyst Arjun Murti that supply constraints could catapult prices to $150-$200 a barrel over the next six-24 months.
See Professor Mauldin's What's With The Price of Oil?
From the Bull Pen: Bulls can continue to play the oil ETF (USO) and might consider entries near the $100 level.
From the Bear Cave: Bears believe a correction is inevitable with much of the move in crude oil being on speculation. These bears might consider positions in the inverse oil & gas ETF (DUG).
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.
Daily Recap Newsletter