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buying stocks in oil companies

  • 01-12-2008 10:46pm
    #1
    [Deleted User]
    Posts: 0 ✭


    The price of a barrell of oil is at a 4 year low as we all know, its great news for us all but it will surely rise in the near future.

    My question is, does anyone here have any info on buying stocks in oil companies, drilling companes etc as these shares have plummeted in the last 4 months. May be a great time to buy.

    Any info/pointers would be appreciated


Comments

  • #2
    Idu
    Registered Users, Registered Users 2 Posts: 1,152 ✭✭✭Idu


    What goes down does not necessarily have to go back up. I remember reading that OPEC said that the break even price of a barrell of oil was c$75. The price is now below $48 on the back of recessionary fears. Doesn't add up to much profit for those oil producing companies.

    OPEC will probably cut production to try and stimulate a rise so now its up to you to figure out wether that will outweight all the negative recessionary fears. Best of luck


  • #3
    pocketdooz
    Registered Users, Registered Users 2 Posts: 1,559 ✭✭✭pocketdooz


    rarnes1 wrote: »
    The price of a barrell of oil is at a 4 year low as we all know, its great news for us all but it will surely rise in the near future.

    My question is, does anyone here have any info on buying stocks in oil companies, drilling companes etc as these shares have plummeted in the last 4 months. May be a great time to buy.

    Any info/pointers would be appreciated

    IF you feel like investing in oil you could check out 'USO' , an ETF that tracks the price of oil and trades actively on the American Stock Exchange (AMEX) - with the oil companies you need to start thinking about lots of other factors besides the price of oil that affects their profitability, like contracts, currencies, interest rates etc. USO is a pure-play on oil prices if you're interested


  • #4
    dunkamania
    Closed Accounts Posts: 1,803 ✭✭✭dunkamania


    janets_on_clubs wrote: »
    I remember reading that OPEC said that the break even price of a barrell of oil was c$75. The price is now below $48

    The long term equilibrium price that will promote appropriate levels of exploration and devlopment is $75, acccording to one OPEC member. The breakeven price would be much lower, particularly for Middle Eastern OPEC countries, which have the lowest per barrel costs. However, due to budgetary mismanagement, current oil prices would leave some countries with massive deficits. Iran is estimated to have a balanced budget at $100 a barrel, Venezuela are probably close enough to $100 a barrel also. Both countries are expected to flaunt OPEC production cuts, and pump as much as they can.


  • #5
    dunkamania
    Closed Accounts Posts: 1,803 ✭✭✭dunkamania


    pocketdooz wrote: »
    IF you feel like investing in oil you could check out 'USO' , an ETF that tracks the price of oil and trades actively on the American Stock Exchange (AMEX) - with the oil companies you need to start thinking about lots of other factors besides the price of oil that affects their profitability, like contracts, currencies, interest rates etc. USO is a pure-play on oil prices if you're interested

    ETFS have a range of energy etf's traded in London


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