Norwell

My Thoughts on Oil

I would think you would go the other way. If you think of markets as really world based, then if the dollar is dropping which is boosting the price of oil then US based oil companies would probably stay even at best.

I think the non-US companies involved would see the best appreciation: higher oil prices combined with appreciation in their local currency against the dollar.

On Jun 02 08:23 AM Andy1234 wrote:

> If you suspect oil to increase......and the dollar to decrease...wouldn't
> you want to own american oil companies and the companies that are
> based in the US for oil drilling services?
>
> When you invest in foriegn companies...you run the risk of their
> operations increasing faster than the price of oil....have a currency
> exchange risk.
>
> Nintendo is a great company...selling record units....yet they got
> smoked when the yen rose against all over currencies.
>
> Just one more thing to think about...although I would still buy a
> diversified basket of oil exploration and drilling service companies...especially
> where all the oil is;)