PDA

View Full Version : Is oil a good investment?



Narnia
Wednesday, May 24th, 2006, 07:26 AM
Is oil a good investment? It has gone up to $70 or so a barrell. But will it go up anymore? I'm asking this because, the stock market doesn't seem to be a safe haven for your money.

Dr. Solar Wolff
Wednesday, May 24th, 2006, 08:55 AM
The basic rule of capital investment is: buy low, sell high. Right now is not a good time to buy into oil because it is already too high. Of course, as they say, it could always be worse---oil could go up if Nigerian supplies are distrupted, Iraq continues to be out of the world's producers of oil, South American countries and even Mexico decide to "talk" to the USA through oil and if the USA or Israel attack Iran. But, there is a second basic rule of capital investment: Never invest in anything you do not know. So, if you know the oil business then this might prove profitable for you. If not, you will probably lose money no matter what happens. That is how the stock market operates and continues to rise--they fleece new investors.

Narnia
Wednesday, May 24th, 2006, 09:05 AM
The basic rule of capital investment is: buy low, sell high. Right now is not a good time to buy into oil because it is already too high. Of course, as they say, it could always be worse---oil could go up if Nigerian supplies are distrupted, Iraq continues to be out of the world's producers of oil, South American countries and even Mexico decide to "talk" to the USA through oil and if the USA or Israel attack Iran. But, there is a second basic rule of capital investment: Never invest in anything you do not know. So, if you know the oil business then this might prove profitable for you. If not, you will probably lose money no matter what happens. That is how the stock market operates and continues to rise--they fleece new investors.

Yes I agree with you Dr.Solar Wolff. We are living in perilous times. Surrender may seem to be the natural choice in engaging Iran but we can't do that. Iran is not going to relent just because we surrender. Iran will still fight us whether we leave them alone or not.:P

I will probably put all my money in gold, extra money that is.

beowulf_
Friday, May 26th, 2006, 02:53 PM
Check out Canwest Petroleum Corp (CWPC.OB) which
trades on the Nasdaq OTC, a junior Canadian oil sands
and oil shale exploration company which holds huge
land positions in SK.

Early drilling results indicate giant oil reserves in the
scale of some Opec members whilst the company is
valued at only around 1 billion $ market cap FD.

As to now they have no production going on so this one
is a little risky but the overall risk/reward ratio is very
favourable. Do your own DD. Website:
http://www.canwestpetroleum.com/s/Home.asp

For a more conservative investment approach I
recommend shares in other oil sands plays like
Canadian Natural Resources, UTS Energy or Opti
Canada and internationally Tatneft (esp. the preferred
shares), Petrobras and on the downstream side
Korean chaebol SK Corp.

After all with Peak Oil looming and shares of IOC
pricing in only oil prices of 40-50$ per barrel you even
can do no wrong buying shares of majors like
ConocoPhillips or Chevron.

Other commodities with a structural shortfall and
long-term risk of exhaustion like zinc, silver and
uranium will have a bright future as well.