Oil Oil Oil
Last week, when I talked to my Dad, he thought oil price at $53 is too low already. He said oil price couldn’t be that low.<?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" />
Hmm… how much is oil indeed, I am not sure, from news, Bush said he wanted to keep oil price under $60 last year. Well, last year was crazy, oil price once went over $70. Remember, when I was young, I was quite excited about having energy crisis when teacher said oil would only last for 50 more years; however after last few years, I really hope people could sort this out.
Because of the relative mild season last year, oil reserved was sufficient in many places. Hence oil price would not go high again. Last night, oil price was $50.53, oil price is even more volatile than many securities. Well, afterall, what does it mean? Good or bad? For oil price low, it should be good for many manufacturing industries, the most closely related is Eva’s Airline. Take a look at the biggest market cap airline, BA:
Crazy~
Actually, everything related to airline industry are benefited including Boeing, Airbus or should also be UPS, FedEx… That’s how information related to daily life.
I don’t want oil price to increase, however as OPEC will reduce the oil output from Feb, the oil price supposed to be stable soon. Again, what do we care about this information? Well, combining what I said about China, I would expect before the oil price goes high again (when it touches $50), it probably a good timing to invest in oil related companies in China.
Would the happy life of BA end? I am not a follower of airline news, however I read that the CO2 license trading in EU does hurt airlines, if they cannot exempt it, they have to divert it to customers and hurt their profit. What would happen to <?xml:namespace prefix = st1 ns = "urn:schemas-microsoft-com:office:smarttags" />
Eric