Tuesday, December 16, 2008
Exiting the Oil Trade
I went ahead and exited the oil trade. OPEC announced that they will cut 2 million barrels of production tomorrow. This appears to be a "buy the rumor, sell the news" trade. Economic weakness is probably going to trump the production cut and keep pressure on oil prices. If you're looking for a oil company to buy and hold, its still a good time to buy. I believe supply issues will become important once we see some economic recovery, and prices will climb again.