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.

Quick Hits: Summer Takes Oil Traders by Surprise

By

Brief scrutiny of today's headlines

PrintPRINT
Fuel prices hit another record high today on fears the summer driving season will squeeze already strained gasoline reserves. Crude oil jumped by more than $2 per gallon and prices at the pump now average almost $3.40.

The Energy Department forecasts prices will reach as high as $3.60 within the next few months. Many analysts think this estimate is wildly conservative; $4.00 looks like a more realistic peak.

Some investors worry refiners like Exxon Mobil (XOM) and Tesoro (TSO) may see profits drop despite rising fuel prices. Oil is increasingly expensive to pull out of the ground, one reason prices have been driven up in recent years. This is bad news from Big Oil CEOs, who recently did time on Capitol Hill to defend their fat bottom lines.

Unfortunately, the predictability of rising summer oil prices isn't helpful to anyone. Investors can't trade it, buying oil futures in January and selling in May, because the phenomenon is priced in. And motorists can't fight it, because they don't allow bikes on the New Jersey Turnpike during rush hour.

For more on oil prices check out Hoofy & Boo's always astute report.

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.

PrintPRINT
 
Featured Videos

WHAT'S POPULAR IN THE VILLE