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The main reason I am not too worried about oil

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April 08, 2011 – Comments (4)

The climbing oil prices are making me worry about some of my stocks, and making me want to raise some cash (I am currently fully invested).  Yet oil is up a crap load YTD, and the market is up.  This makes me believe 1) Stocks are very cheap still and oil can climb more before it hurts us   2) The market believes this oil spike is temporary

The market doesn't really seem to mind oil going up.  Also, my uranium stocks aren't doing well, and natural gas is falling. If oil rises the price of all other energies should rise too, but they are not.

This is why I think oil will fall...because it's doing its own thing in a vaccuum.

However I am a delivery driver and it is very annoying to pay more at the pump

4 Comments – Post Your Own

#1) On April 09, 2011 at 11:35 AM, buffalonate (94.62) wrote:

Cars are much more efficient than they were a few years ago so it won't hurt the economy as much.  They have so much oil in storage in Oklahoma they are running out of room to store it.  The oil price is speculation not demand driven. 

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#2) On April 09, 2011 at 2:11 PM, RonChapmanJr (93.30) wrote:

Worldwide production appears to have peaked in '05.  It will be a bumpy ride going forward no matter what.

http://www.eia.doe.gov/aer/txt/ptb1105.html

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#3) On April 09, 2011 at 2:41 PM, Pennyperson (< 20) wrote:

buffalonate (41.72) wrote: Cars are much more efficient than they were a few years

I agree - But: The U.S. is driven by the middle class. The stats suggest they're not buying new cars. So, high gas at the pump is a bummer for all. I filled mine up last night at the price of $81 and change. That's a hard thing to swallow for anyone except the rich.

 

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#4) On April 10, 2011 at 2:15 PM, Valyooo (99.43) wrote:

Ron, thanks for the link

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