andrewh10

Recent Oil Spike: 'Irrational Exuberance'?

The head of XOM and other major oil corporations have also voiced their opinions that oil is mispriced and should fall into the $40-80 range. Why do you think XOM has been putting all their cash to work buying back shares instead of exploring at these prices. There is an enormous amount of money to be made in oil on the way up and back down again. The recent pricing mania is not rational based on the real supply data and the current demand. There are a lot of huge players behind the scene at work here much larger than Mr. Boone Pickens. We will probably see some hedge funds get it wrong and go bust like Amaranth did when they miscalculated natty gas. Anyway I tend to agree most with the thesis in the book, A Thousand Barrels a Second: The Coming Oil Break Point and the Challenges Facing an Energy Dependent World by Peter Tertzakian.