Barron's: Time to double down on oil?

Posted Jan 24th 2009 11:40AM by Tom Taulli
Filed under: Exxon Mobil (XOM), BP p.l.c. ADS (BP)

Not that long ago, investing in the oil sector was a no-brainer. It was an easy way to make some quick bucks.

But, now, there's mostly doom and gloom as oil prices have plunged since reaching a peak in July.

So, is it time to come back into the market? Well, this is the view from the front-page story in this week's Barron's [a paid publication].

However, for the next year, the forecasts for oil are wide-ranging. After all, it's really dependent on if the economy comes back. And, does anyone have a good grasp of that?

Instead, investors need to take a long-view of things. Yes, eventually the economy will rev again. And, at the same time, OPEC will find ways to cut back on production.

Yet, it's still important to focus on global oil operators, because they have the resources to expand their platforms as well as maintain dividends. And, according to Barron's, the top ones include companies like: ExxonMobil (NYSE: XOM), Total (NYSE: TOT) and BP (NYSE: BP).

Tom Taulli is the author of various books, including The Complete M&A Handbook and The Streetsmart Guide to Short Selling: Techniques the Pros Use to Profit in Any Market. He is also the founder of BizEquity, a valuation website.

Tags: BP, Exxon, inthenews, Oil, oil prices, TOT, Total, XOM

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Reader Comments (Page 1 of 1)

1-24-2009 @ 11:58PM

Iridium said...

Time to double down on the wholesale slaughter of oil traders. Every oil trader that has entered the market that can't ever use a single barrel of oil needs to be arrested for fraud and thrown in jail for crimes against humanity.

Oil will never return to a real market based on demand as long as the majority of buyers have no business in the oil market. These people have no use for an actual barrel of oil, they just use it as a tool to rip off the people who really need it.

The thieves that have manipulated the common market have invaded the commodity market and infected it with the plague of economic socialism.

Unless we take these traders out we are all doomed to live through a depression far worse than the 1930s.

Oil is the lifeblood of the global economy. It is not a toy to play with in order to make a quick buck. If I saw a person that helped run oil up to $140 on the street, I would beat them to a pulp and not feel a bit of remorse.

2-05-2009 @ 3:18PM

Bill said...

Maybe someone that has real knowledge of the oil trade market can explain in terms everyone can understand why the price of gas has gone up over 30 cents in the last month while oil is selling for lower prices? Especially since there are tankers left and right sitting waiting for room to be unloaded because of a surplus.