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Friday, June 22, 2007

Why buy more Oil Stocks ?? ….and which ones to buy ?

We know that whenever oil prices move up, so do their stocks.

Now, some experts are saying that oil production is going to peak in three years…I mean it’s all downhill from then on !

But what about the demand? The demands not going to slow down.

Also, China needs a huge quantity to meet its booming infrastructural needs.

Add to that growing vehicles in India & other South Asian countries.

Now which oil stocks should you go for?
-the behemoths, the midcaps, or the smaller ones.

Stick to the midcaps…..because the big ones might not be able to manage with logistical problems. Amongst the smaller ones, though showing initial promise, many might not be able to cope with smaller capital.

Monday, June 11, 2007

More on Oil stocks

I'll be analyzing more on which Oil Stocks are headed for a boom time.

Buy Oil Stocks NOW

Oil prices are increasing due to worries about a future Iran-U.S. showdown.

Quoting this report in Reuters :

“Iran's Oil Minister Kazem Vaziri-Hamaneh, said in Kuala Lumpur on Monday there is no shortage of crude in the market and OPEC has no plans to increase supplies, in the latest rebuff from the producers group to consumer nation calls for more oil.

"Now there is no shortage of crude oil in the market," he said when asked if OPEC should release more supplies to the market to temper high oil prices. "

"The reason for the price hike is not because of crude supply problems."

Worries over Iran's nuclear dispute with the West have been a driving factor for oil prices this year. But Vaziri-Hamaneh said the country's crude output is expected to rise to 5.3 million barrels per day (bpd) by 2014, up from 4.3 million bpd currently.”
Our take : The consumer nations’ trends, especially developing countries like China & India….are very rapid rate of increase for oil. OPEC countries’ set a quota for oil production….once that quota is set….generally they do not reverse it.

This is because the quota determines manufacturing plans, production & management plans.

1. But demand is going to be higher.

2. Also, there PROBABLY WILL BE A TENSION WITH IRAN….this nervousness will prompt some developed countries’ to get more oil to funnel it into their reserves.

This might be the right time to but oil stocks…..they are going to go up due to increased demand.

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