Otter Tail Corporation Message Board

  • aces_over_8ss aces_over_8ss Jun 20, 2006 8:48 AM Flag

    Oil stocks...

    what's up with these ones lately?

    Crude is hanging around $70/bbl +/- a buck or two, but the stocks have been getting crushed.

    Am I missing something?

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    • The prospect of a slowing economy, perhaps?

      I haven't been watching the weekly oil reserve reports. Have they been showing more than expected supply?

      FWIW

      • 2 Replies to egbertomahler
      • Hey Eg.
        I'm not sure. I have been out of the loop lately too.

        Inventories can't be that high if crude continues to hang around $70.

        You make a good point about future economic slowdown... the stocks may be telling us about the future price of oil which is going to be lower than the present price.

      • i chalk it up to optimism that supply won't be disrupted, e.g., the iraqis seem to be talking, etc......so the risk premium is coming out.

        frankly, if you read what the iraqis are actually saying, i think their goal is to disrupt supply and anyone selling out due to "optimism" is nuts. to date, has this administration handled any tough diplomatic situation deftly? or concluded it positively for the common guy here? Even a generous assessment of their abilites requires a serious risk premium to be built in.....but the administration has one very potent weapon...mr rove.

        that guy...someday historians are going to look back.....

 
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