CNOOC Ltd. (NYSE ADR: CEO) and Sinopec Corp. (NYSE ADR: SHI) have agreed to buy a 20% stake in an oil field off the shore of Angola for $1.3 billion, illustrating China’s persistent attempts to acquire resources for its economic expansion at a time of weakness for many Western oil majors.
On June 10, 2008, Alexei Miller, CEO of Russia’s Gazprom, told a French audience that crude oil prices would reach $250 a barrel in 2009. His former Gazprom cohort and then freshly minted Russian prime minister Medvedev did him one better… pegging crude oil prices at $500. Was it wishful thinking? Did the gentlemen overdose on “hard-money” investment newsletters and Peak Oil Theory? We may never know.
The Russia-Ukraine battle for natural gas played out well last year for these three natural resource stocks, and it’s happening again. J. Christoph Amberger of Today’s Financial News predicted back in November of 2008 that the Ukraine would go into a “deep freeze” and that forecast came to pass at the beginning of this year.
Who knew that oil, once the pariah of the western world, would have such a positive role in the Obama’ Administration. Senator Clinton couldn’t have asked for a better ally. Oil is bringing America’s strongest enemies to their knees and reminding Europe why Russia isn’t such a great neighbor after all.
The rules of the global oil games are changing, says Keith Fitz-Gerald. And China — not the US — is leading the way. China doesn’t worry about the political leanings or dubious human rights of its energy suppliers. It needs a steady supply of oil to fuel its economic boom…and it will do what it takes to get it.
It’s been a volatile year for crude oil prices. After touching above $147 a barrel in July, the black goo is trading back below $110 a barrel.
Don Miller says industry insiders are now betting on triple-digit crude oil prices for the next decade. And long-term oil futures show demand will continue to outstrip supply, as Asia industrializes and proven reserves diminish.
Don says Transocean Inc. (NYSE:RIG), StatoilHydro ASA (NYSE:STO), and Petrobras (NYSE:PZE) are likely to benefit from new drilling projects. And the company that supplies equipment lines for 90% of oilrigs, National Oilwell Varco (NYSE:NOV), is also well placed for profits.
China and Iraq will sign a deal next week to develop the Ahdab oil field, 100 miles southeast of Baghdad. The move comes at time when political gridlock and security concerns have cast doubt over several pending short-term contracts, says Jason Simpkins in Money Morning.
Yesterday, oil was back up on a weaker dollar.
Crude oil futures gained $1.66 to settle at $114.53 a barrel on the Nymex. The euro, meanwhile, inched up 0.1% against the buck, off a six-month low of $1.4630.
Energy and oil expert Byron King says investors can expect oil to continue to head northward for all the familiar reasons. Oil’s long-term fundamentals are little changed since hit spiked to $147 a barrel at the end of July. And you can now pick up resource plays in 2008 at 2005 prices…
Iraq has officially opened the door for foreign oil companies to invest in the country’s rich energy sector for the first time in more than 30 years.Thirty-five foreign oil majors have been invited to bid for contracts to provide technical support and help boost production in eight oil and natural gas fields.
The contracts will be awarded in 2009, as Iraq’s oil minister, Hussein Shahristani, hopes to increase production by 2 million barrels of crude oil per day by 2013.
Circuit City Falls, Cuts Dividend; Mitsubishi Working on Plug-In Line; Continental and United Buddy Up; Western Oil Back in Iraq; Citi CFO Sees More Trouble; Bear Stearns Execs Arrested; Transocean and BP Extend Drilling Contract; Bank of America to Takeover Countrywide by July.