re: **oil firm to rising** No oil shares were priced on "a world perception that it is running out of oil." If they were we would have had a 1979/1980 style boom in oil stocks. At this stage we have not.
US$40/barrel or even US$35/barrel is still a very good price for oil companies. Even at US$35/barrel there is plenty of growth in oil companies' share prices.
No price moves up in a straight line. What OPEC have done is a draw a line in the sand. They like the current price of oil. It has not collapsed the western economies. So OPEC intends to fully defend that price. That is why they are acting while oil is still over US$40/barrel.
The oil price is influenced by:
1. Demand
2. Supply
3. Perceptions - eg. about availability of future supply.
HDR
hardman resources limited
oil firm to rising, page-5
-
- There are more pages in this discussion • 8 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)