OIL

OIL has taken a beating yesterday and its dropping again today.

Just my take on it, but for a LONG investment over the next year or so, I'd be watching OIL and jumping in on the dips.

I don't ever see gas prices at the pump dropping to $1.99 per gallon in the future, even if we have another leg of a recession. On the other hand if the economy really does pick up then I see $3.00++ per gallon as very likely. I think IRAN, USSR and SAUDI ARABIA are cheating on the OPEC quotas and pumping out extra right now, largely to see who will be the dominant player in the middle east in terms of influence. So there are some political issues involved. Chavez is starving to our south, he needs higher crude prices and can't get them, so they've got all sorts of issues and he is screaming for lower world wide production.

It strikes me that the recent drop in the price is creating a long buy opportunity for someone who has the patience for it to climb back up. It may continue to drop a bit more? In any case I'm holding a lot of OIL and looking to buy more on this dip.

Obviously JMO and ramblings.

Nothing wrong with having a position on oil . You may be right . I watched a big turn down in oil usage and wonder with the large surplus we have how much lower oil can go . It would be nice to see it hit 40 - 50 bucks a barrel and then jump on board . OPEC would be screaming bloody hell and tighten the taps to drive it up . If we have a mild winter .....who knows

I have shares in oil companies, but I personally think shares in companies with LNG interests have the brightest future.