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A Look at Oil
posted Oct 6, 2005 at 10:05PM

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Crude looks to correct and retrace some gains here, no doubt under the rationalization of a weaker economy. In the end I feel this correction is an opportunity to add more to positions or to reenter new ones.

With Iran squarely in the sights of US and British rhetoric I cannot see the risk premium being taken off any time soon. All it takes is one 500lb bomb to be dropped in Iran, and the whole Middle East oil supply comes into question.

Definitely take a care of where the oil assets are being held. North America is good. North Sea is good. South America (Peru, Brazil, and to a point Argentina)is not bad. Venuezuela is very very risky. Investing in assets in countries controlled by Islamic leaders is shooting craps.

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