Tuesday, August 10, 2004

Oil @ $45? Nervous Yet?

The fear premium rises, production stays constant, capacity is stays low.....prices go skyward. The only way to recover the money that goes in the tank is by buying oil companies. May I suggest Yukos, for about 10 cents on the dollar about two months from now?

Oil soars near $45 a barrel
Concerns about Iraq, Yukos supply

LONDON, England -- U.S. oil prices surged to just under $45 a barrel in after-hours trading late Monday, setting a fresh record high on concerns about the stability of supplies after output stopped in Iraq.

Light crude futures put on 15 cents to $44.99 -- the highest since futures began trading on the New York Mercantile Exchange (NYMEX) in 1983.

In London, Brent crude for September delivery was down 15 cents to $41.41 a barrel, compared with Monday's record high at $41.70.

The price rise came after security concerns halted output at oil fields in southern Iraq, and fears grew of further supply disruption in Russia arising from the Yukos crisis.

Art Hogan, chief market strategist for Jeffries & Co., told CNN that concern about oil was "more psychological than fundamental."

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