Oil And Gas Penny Stocks

[mage lang="" source="flickr"]oil and gas penny stocks[/mage]
Gas Prices?

I keep hearing people coplaining about gas prices, and i think i have the reason. I know its not supply and demand, i dont hear a single gas station say they are running low on fuel (because of supply issues). I believe its because of speculation. Lets debate it. Seeing as the stock prices fluctuate pennies, dimes, nickels and dollars (i know i left out quarters) everyday, a lot of prices in the United States, therefore the world, are based on speculation, not fact. A person just has to say “The credit crisis will effect the oil market”, and as long as he is creditable, the price of oil per barrel will raise immediately. Even if supplies are strong and there is no reason. Please tell me if my way of thinking is correct. I would like to hear other ideas also.

I believe that speculation has ALOT to do with this. Everytime one little news story comes out the price of crude OIL on the commodity market drastically goes up or down. I think about a month ago Morgan Stanley said they expected the price to be $150 a barrel by 4th of July. The price jumps from $128 to $139 that day. In my opinion them saying that was totally unethical and they should be investigated for market manipulation and fined heavily. The price of crude oil going up obviously benefits them and I think they used there power in the wrong way. YES, the housing market has a lot to do with our recent economic problems. The FED is in a hard spot, they have kept on lowering there interest rate making the value of money greatly decrease against other currencies. I personally do not think we should all suffer for some STUPID people taking out variable loans. I think it is FINANCE 101 to get the fixed loan. This also punishes the smart people, saying well you did the right thing but we are gonna bail out all these morons. With the value of money going down it is very practical for foreign investors to invest in oil as Hedge against inflation, which also helps drive the price up. Supply and Demand also has some to do with it, but Not nearly what the price suggests…. I think OIL should be trading at about 90 dollars a barrell. There is no way in 5 years that OIL has x5 or doubled the last year. How can this be, there is no way the situation can worsen this fast.

It is hard to say which direction the price will go, there are many different answers. In my opinion in August OIL will slightly Collapse and will fall to $90 a barrel or lesss by the end of the year. Then it will go up again like it did this year and even get even higher and again collapse in AUgust. I think this will be the trend for the next 2 to 10 years. I think once we get alternative energy going and are more dependent on our own oil things will get better.

Why PENNY STOCKS best the PENNY STOCKS market now


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