Contrarian Stock Market Investing News - Featuring Bargain Stocks » Pain At The Pump

High Gas Prices Hit 13-Day Record at $3.80

Contrarian Profits — Tue, 20 May 2008 12:07:59 +0000

High gas prices continue to affect American motorists, staying at record highs for the 13th day in a row, according to the AAA.

CNN reports that US gas prices have now risen for 14 straight days.

According to the report: “For the first time since 2002, Americans plan to drive less on the holiday weekend than they did the year before, with high gasoline prices in a weak economy a prime reason.”

A great way to profit from skyhigh crude oil prices, which is causing high gas prices, is to invest in Canadian tar sands stocks, says Brian Hunt in DailyWealth.

“When oil is trading for $60 a barrel, mining the tar sands is a good business. When oil is trading for $80, it’s a great business. And when oil is trading for $120, it’s a money machine.”

Christian DeHaemer in Taipan Daily has another great way to play spiraling oil prices: natural gas.

“On Monday,” says Christian, “the Russian giant, Gazprom, shut down a quarter of its gas supply to the Ukraine to force the country to pay off a $600 million debt. This was settled today, but underscores Europe’s worries over the reliability of natural gas coming from Russia.

“The last time Gazprom played this game was two years ago, when the Ukraine went for three days without gas and pipelines in Europe saw a drop in pressure.

“Europe gets 20% of its gas from Ukrainian pipelines. The Ukraine, in turn, gets its gas from Russia. It’s a system that leaves Europe beholden to Russia, much like the U.S. is beholden to OPEC.

“As Lord Palmerston once said, “Nations have no permanent friends and permanent allies, only permanent interests.” This means that Europe is looking for other suppliers. North Africa fits the bill, and a pipeline is being built to Spain.

Read on here to learn more about ways to profit from the situation.

Gas Tax Holiday: Clinton Determined Despite Criticism

Contrarian Profits — Mon, 05 May 2008 18:38:00 +0000

Hillary Clinton still believes a gas tax holiday is good way of easing American’s pain at the pump despite criticism leveled at the idea. Many believe the initiative comes down to political pandering and that the only beneficiaries of the proposed federal gas tax break would be politicians and oil companies.

According to the The Guardian newspaper: “The gasoline tax holiday has emerged as a policy distinction between the two candidates, and Clinton in recent days has promoted it in an effort to win over working-class voters hard hit by rising fuel prices. Obama dismisses the idea as an unworkable political pandering.”

Charles Delvalle of Investor’s Daily Edge says, “Clinton thinks that this tax somehow takes excess profits away from oil companies. Um, last time I checked a tax holiday takes money away from government. After all, they’re the ones taxing!

“And then McCain thinks this holiday will somehow give parents the money they’ll need to go back to school shopping. What does he think, that parents fill up their tank twice a day? This money won’t be anough for a damn thing!

“My conclusion was that the gas-tax did absolutely nothing to fix the reason that gas prices are higher. And in the end, all it would do is spur more demand for gasoline, meaning prices would go even higher.”

Pain at the Pump: No End to Gas Price Hikes?

Contrarian Profits — Tue, 22 Apr 2008 10:17:40 +0000

Crude oil yesterday shot past $117 a barrel. Sky-high oil prices are now hitting Americans where it hurts: their wallets. The average price US drivers paid for gasoline has soared to a new high of $3.51 a gallon, rising a hefty 11.9 cents over the last week.

“The rise in the oil price has little to do with supply and demand, says Phil Flynn of Alaron Trading over at Casey Research,” and has everything to do with the value of the dollar … It really is all about the dollar right now and if the dollar shows any sign of strength, you’ll see a lot of money come out of oil very quickly.”