Barry Robbins

Mexico's Hedge Signals Bottom of Oil Price Drop

I think the decline of Mexico's major oil field, Cantarell, will have a much bigger effect on raising the price of oil. Cantarell's decline will also push down the value of the peso, since the field is a major source of revenue for the Mexican government. I think the puts are a way for the Mexican government to guarantee their revenue stream - if oil goes down, they make money on the puts. if it goes up they make money selling oil. They minimize their gains and losses.

Global Financial Crisis Makes Oil a Great Hedge

Maybe. But this is a short-term trading strategy. Just do a google search on "Cantarell" or "Burgan", and you will find stories about the declining production rates of 2 of the world's biggest oil fields, in Mexico and Kuwait, respectively. The steep falloff in Cantarell production will have a major impact on the Mexican economy.

Maxwell's Oil Analysis

I think many oil analysts are underestimating the panic that will result when the general public realizes that we face ever-declining supplies of oil. Few people realize the scope of the problem. Hopefully by 2013 we will have made much more progress with wind, solar, natural gas, and plug-in hybrids.