Contrarian Stock Market Investing News - Featuring Bargain Stocks » Chanel http://www.contrarianprofits.com Access market-beating ideas from the world's top investment gurus on stock market investing, the gold market, ETFs, Forex trading and real estate values. Mon, 10 May 2010 15:10:45 +0000 http://wordpress.org/?v=2.8.5 en hourly 1 Why Crude Oil Is Good Value http://www.contrarianprofits.com/articles/why-143-oil-looks-dirt-cheap-compared-to-other-necessities/3417 http://www.contrarianprofits.com/articles/why-143-oil-looks-dirt-cheap-compared-to-other-necessities/3417#comments Wed, 02 Jul 2008 12:35:20 +0000 Mike Burnick http://www.contrarianprofits.com/articles/why-143-oil-looks-dirt-cheap-compared-to-other-necessities/3417 Editor’s Note: Crude oil prices are still above $140 a barrel, and King Abdullah of Saudi Arabia has told us all to get used to high prices. But Mike Burnick — senior analyst at The Sovereign Society — says the black goo is ‘pretty cheap.’ When you compare it to other products consumed heavily by Americans, oil actually seems pretty good value.

Why $143 Oil Looks Dirt-Cheap Compared to Other ‘Necessities’

By Mike Burnick

Investors are fretting over US$143 oil. Consumers are concerned about US$4 gas. But a recent story on CNBC.com really put this all in perspective. The story revealed how the high price of crude really stacks up against several other “necessities.”

The conclusion…oil’s actually pretty cheap at these levels.
In fact, a trip…

]]> Editor’s Note: Crude oil prices are still above $140 a barrel, and King Abdullah of Saudi Arabia has told us all to get used to high prices. But Mike Burnick — senior analyst at The Sovereign Society — says the black goo is ‘pretty cheap.’ When you compare it to other products consumed heavily by Americans, oil actually seems pretty good value.

Why $143 Oil Looks Dirt-Cheap Compared to Other ‘Necessities’

By Mike Burnick

Investors are fretting over US$143 oil. Consumers are concerned about US$4 gas. But a recent story on CNBC.com really put this all in perspective. The story revealed how the high price of crude really stacks up against several other “necessities.”

Budweiser ImageThe conclusion…oil’s actually pretty cheap at these levels.
In fact, a trip to your favorite neighborhood sports bar will really give you sticker-shock. A barrel of Budweiser (NYSE: BUD) beer will set you back US$447.25.

Would you like some Tabasco hot sauce for your chicken wings? That’ll cost you US$6,155.52 a barrel! Hmm…I’ll take mine mild.

Switching to water to quench your thirst instead of beer won’t save you much either.

A barrel of Perrier will set you back US$300.61 per barrel.

Starbucks ImageHow about a trip to your local neighbor Starbucks (NASDAQ: SBUX) instead? Cost: US$954.24 a barrel. That’s only IF you take your coffee black. Adding milk will cost you another US$163.38 a barrel.

Of course you can always just stay home, and drown your inflation sorrows in a pint of Ben & Jerry’s New York Super Fudge Chunk instead. Cost: US$1,609.44 a barrel.

Clearly, it’s belt-tightening time for the average American amid these soaring prices for everyday “necessities.” Just cut back on the luxury items and you’ll be OK. After all, who can afford Chanel No. 5 at a cost of US$1,666,560 a barrel? My wife will just have to do without!

MIKE BURNICK, Senior Editor & Global Markets Analyst

Source: Why $143 Oil Looks Dirt-Cheap Compared to Other ‘Necessities’

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