A Big Upgrade for United States Oil

• Report this Comment On December 31, 2008, at 1:08 PM, timkop wrote:

  I agree oil and energy will rebound at some point in the future. While nobody knows for sure you can reap the reward by buying USO while it hovers near $30.00 or under.

• Report this Comment On December 31, 2008, at 2:04 PM, nostradamus1 wrote:

  A barrel of crude oil is cheaper than bottled water in supermarkets.

  In mostly all western European countries a bottle of one and half litres of water costs 0.70 Euros. In order to compare both prices you need to buy 106 bottles of water to get 159 litres, equivalent to a barrel of crude oil, so 106 x 0.7 euro = 74.20 euro

  Now we have to change euro to dollar so, 74.20 euro x 1.4 = 103.88 dollars.

  As you can see, you have to pay 103.88 dollars to get 159 litres of bottled water, but you only need 35 dollars to get a barrel of crude oil.

  80% of the income of countries like Saudi Arabia, Iran, Kuwait, Arab Emirates, Iraq, Venezuela, and almost the rest of the oil exporters’ countries is based on the sale of this raw material.

  The oil reserves in operative oilfields started declining years ago but the world needs and demands more and more oil year after year. In the last 25 years, we haven’t discovered any important oilfields and the new ones are very difficult and very costly to operate. Most of them are placed in far open sea and in very deep water sea. The other ones are placed in land but in abysmal depths with low capacities.

  $100 barrel is too cheap for something that moves the world and that is so scarce.

  How long do you think that the price could remain here? 6 month? 1 year? year and half?

  How lower could it go? $30 pb? $25 pb? $20 pb? Less? Ok, now please tell me, do us, japan,

  and Europe want to recover the crisis making cars and building houses? do they want to recover the employment? in order to revive the economy they must put money in it, then the people can get employment and buy cars and houses, it means opened factories and banks, it means money in hand, and IT MEANS OIL DAMAND, this is the true reality, Geopolitical conflicts with Iran in Persian gulf and strait of hormuz , problems in Venezuela, in Arabia Saudi, Israel- etc .etc. natural disasters in gulf of Mexico, India, China, all these MEAN OIL DAMAND, but the world must go on and on, so no matter how long it takes, we will see oil at $147 0r $200 or maybe more, who knows!

• Report this Comment On December 31, 2008, at 6:16 PM, dividendgrowth wrote:

  Contango is killing USO.

• Report this Comment On January 01, 2009, at 9:01 AM, halabeck wrote:

  its true oil prices in historical terms are in distress more than ever, however, more and more is now produced by govt controlled oil companies than corporates, the former have budgets and govt to run, forced to produce more as prices fall thus depressing prices even further, especially as someone mentioned in some cases 80% of their incoe is drived by oil.

• Report this Comment On January 02, 2009, at 2:02 PM, rabos9 wrote:

  The "Golfo war" was due by a discution of 2 dolllars (22 dollars requiered by the US and 24 Saddam Husseim)

  Under Clinton, price drop so far low as 9 dolars for a short period.(yes...9 dollars)

  Clinton, pass the US rule to Bush at 24 per barrel.

  Them, Bush and the "Texans petroleum gabinete" move during years pushing up.

  Now,low cost of the barrel,will be estential for the world's developement; other sources of energy and thecnologys (cars for instance) helped by politicals dettitions (oposites to the Bush polices) are coming.

  I remember; at the beginings, when price began to rise and got 40; the news papers put that at the front page as something like a castastrophe.

  Now; looks cheap; compare whit the top prices.

  In other hand: nobody talk about the COST of the barrel.

  Under a logica; cost, more a moderate profit;would be the price.

  One thing is true:the US has the key in relation to prices; and and the key can be moved for one side or other, depending the wind of politicals detitions.

  Who is right?

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