some views on oil

Just came across today further comment on how the present crisis could affect the future price of oil.

These reported comments come from the Daily Reckoning :

"Taking a punt on finance stocks in the middle of a bear market in credit seems...well...insane. Energy stocks? Not as insane, especially if you're early.
--Speaking of energy, the New York Times is reporting that as many as 35 new exploration and production projects from OPEC member nations could be delayed over the coming years, thanks to the oil price crash. Don't mistake dollar strength via competitive currency devaluation with long-term oil weakness.

--Yes, oil is going to be a proxy for the strength of the global economy. But over the coming years, a lot of people in the industry are saying that the oil price crash virtually locked in future shortages. The only question is how soon.

--Saudi oil minister Ali al-Naimi told the Times, "I have often described unsustainably low oil prices as carrying the seeds of future spikes and volatility. In a low-price environment, the trend is often to focus on survival instead of expansion...If we place a low priority on preparing for the future, that lack of action can come back to haunt us through supply shortages and another round of high prices."

So the future seems to hold the likelihood of price rise in oil. In fact an oil futures graph that i saw yesterday indicated that the price of oil is anticipated to be around US$ 70 by late 2010.

But check out comments in my next post. It follows on from what the Saudi minister had to say.