there's no oil shortage_+_+_+, page-10

Oil went as low as $45.30. It was not a good night for oil shares in the US. They continue to trade on comparative low PEs. There's a real problem investing in oil companies. If the price of oil is rising sharply then the market looks ahead and severely discounts the prices of oil companies. Why you say? Because it fears high oil might cause a recession or even a depression and send demand collapsing. If the price of oil starts falling from its highs then who wants to invest in oil companies when the price of the commodity they produce is falling one or two per cent every night like now? That probably accounts for why oil producers trade at a heavy discount in PE terms compared to the rest of the market and solid US stocks like Google and Microsoft.