The current high prices in oil is not going to be a temporary phenomenon. Oil price will continue to rise, as sure as the world is guzzling oil like never before.
Analyst typicaly have a reverse J curve assumption on future oil prices, that is, oil price further in the future is assumed to be lower than current high prices. In my view, the reverse will be the case and oil will get more and more expensive.
Get loaded on oil stocks to gain and to hedge your portfolio. HDR is one of the best oil stocks I can think of that offers a powerful combination of big reserves (relative to its size), huge leverage to oil prices, massive exploration potential, now a strong balance sheet, huge cash flow to come on stream post 2005 and a takeover candidate if I have ever seen one.
HDR Price at posting:
0.0¢ Sentiment: None Disclosure: Held
