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Shahla Money Managing Guru

Joined: 13 Nov 2004 Posts: 3324
Cash Points ££ 126163.28
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Posted: Sun Jan 13, 2008 9:42 am Post subject: Energy Stocks Undervalued as Crude Oil Targets Beyond $100 D |
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By: Roger_Conrad
Is energy cheap or dear? Oil prices cut above the once-unthinkable level of $100 a barrel for the first time ever this week. One of the biggest questions as we move into 2008 is what kind of impact that will have on the wider markets and the US economy.
Since oil bottomed in the late 1990s, both market and economy have survived successive milestones in its rise, despite forecasts of disaster every time a new one was reached. Last year, however, crude prices reached new territory by breaking past their '70s highs in inflation-adjusted terms. At the same time, the collapse of the US housing industry and mortgage market began to stoke US recession worries in earnest.
The move to $100 in the early days of 2008 has further intensified worries that recession will indeed hit this time around. Ironically, this has also raised serious questions about whether oil is headed for a steep plunge, as a slowdown here spreads abroad and slows currently torrid global demand growth.
http://www.marketoracle.co.uk/Article3272.html |
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