Price of Oil
The Middle East is a quarrelsome region. Tolerance is not an inherent characteristic even though it is predominantly just one religion.
But it is the principal oil exporting region. Also oil is not cheap to explore for and in some areas, production is not cheap. The incentive to use alternatives, especially renewal is stifled if the price of oil is low. Hence, for political, financial and save-the-world reasons, the price of oil cannot be low.
However, it has been very low recently. It has been moving up again though. Today, it hit $60; still very low by historical measure.
I am hoping my energy stocks will have a nice rebound today. Kerry Stokes have been investing big in mid-tier energy stocks and he has chosen well. I hope I have to, by principally investing in KAR which has discovered decent oil in Santos Basin in offshore Brazil. The market is totally uninterested in it in spite of all the good announcements it has been making. Maybe these fund managers know better...
posted by Club Mulgoa @ 1:19 PM
2 Comments:
KAR share price just won't go up... even with great news about its oil discovery in Santos Basin, offshore Brazil. But when The Australian journalist wrote in the papers about it, it jumped... This stock has been my biggest and most frequent top ups. Feeling smug but nothing clever as it was all there in the ASX announcements for the last few WEEKS!
Nice... still going up in small amount. That is how I like it; just creeping up. The next jump will be either another great announcement or one of the big oil companies pounces on it.
KAR is not finding a tiny pocket of oil. And the oil is not heavy oil which is difficult to extract and process. And there is little contaminant in the oil (sulphur or carbon dioxide). Yet the market is still not giving it back its original premium.
Post a Comment
<< Home