Cairn Energy: Shorts Could Get Totally Wrong In This Counter
There’s a major correction coming for oil stocks, and most investors don’t see
it coming. So before you even think of buying another oil stock, consider this:
Oil experts from the US to Canada to India believe the global slowdown will
soon burst the $131-a-barrel oil bubble come summer’s end, blindsiding investors
who are just now hopping on the bandwagon.
What’s more, U.S. legislators are now proposing new curbs that will put a
halt to rampant oil speculation from hedge funds and investment banks -
effectively pulling billions in demand from the oil markets.
At the same time, new oil reserves from deep water drilling in combination
with Brazil’s mammoth new oil discovery will soon add billions of oil reserves
to the global marketplace.
In addition, experts estimate that new ethanol blends combined with hybrid
technologies could soon take their toll on oil demand over the next five years.
What’s more, oil prices have a long history of rising quickly and falling
just as fast, dropping more than 10% in January of this year and dropping from
$75 to $63 in the wake of Hurricanes Katrina and Rita…
When you add everything up, you can see that the stage has been set for a
major oil pullback to $100-a-barrel by summer’s end…as $4-a-gallon gas continues
to make deep cuts in demand here and around the world.
Is a major oil collapse inevitable…or as many suggest, could this simply be
forming the foundation of $200-a-barrel oil prices? My answer will shock you.
Oil prices are about to take an expected turn that could easily split Wall
Street into two separate camps:
Those who get rich…and those who lose their shirts.
I realize this sounds hard to believe, as just about any oil-related stock you
may have thrown money at has handed investors major gains.
But hidden behind the scenes are far-reaching implications that will affect
everything you own for years.
Beware The Impending US Hurricane Season
Despite what you’ve been reading about new Brazilian oil reserves…deep sea
drilling technologies sands…new hybrid technologies…and new oil wells coming on
line……any drop you see in prices over the next 90 days will simply be profit
taking. Not a long-term trend as many investors believe.
Here’s why:
National Oceanic and Atmospheric Administration now predicts as many as 9
hurricanes will form in the Atlantic this summer, significantly more than
average.
These hurricanes will not only threaten oil platforms and refineries in the
Gulf of Mexico, but may damage them worse than Hurricanes Katrina and Rita did
in 2004 and 2005.
Those storms, which not only shut down nearly all of US Gulf oil production
but also closed nine refineries, triggered a price spike to $75 a barrel.
Back then Saudi Arabia, moved swiftly to add an extra 1.5 million barrels a
day cover the US shortfall. Today, the OPEC is unwilling to pump not even a
barrel of oil to help the US out of this crisis.
And while no one can predict how many hurricanes will hit or the damage they
could cause, I can tell you this: Investors who are shorting oil stocks in
anticipation of a collapse are going to be in for the shock of their lives!
Shocked as this year’s hurricane season pushed oil prices past $135-a-barrel
and beyond.
Shocked as they bet their future on oil prices moving the wrong way.
And, perhaps, worst of all, shocked as they miss out on the next—and most
profitable—phase of the oil boom, when visionary investors could make a decade’s
worth of profits over the next two to three years.
Nothing in this article is, or should be construed as, investment advice.
Rohit
No comments:
Post a Comment