OPEC, Economic Recovery and $100 Oil
OPEC meets in Ecuador this week. And with oil's recent advance to $90 a
barrel coinciding with an increase in consumer spending, the main topic
of conversation for OPEC officials will be whether to increase supply to
offset rising oil prices.
Saudi Arabia's oil minister is on record as saying that the acceptable
price range for oil is $70-$90 a barrel. But influential investment bank
Goldman Sachs is predicting that oil prices will average $100 a barrel in
2011.
That forecast, however, may be too low. Some expect oil to reach $120 in
2011.
Most believe that OPEC will leave production rates steady. With steady
oil prices, the outlook for oil company profits and stock prices is
extremely positive.
Chief Investment Strategist for Energy World Profits advisory service Ian
Wyatt is recommending the oil producers who are drilling in North
Dakota's Bakken oil pool as a low-risk way to take advantage of higher
oil prices in the future.
New technology has led to a renaissance of North American oil production.
One such oil rich area stretches from Wyoming, through North Dakota and
into Canada. Known as the Williston Basin, this geological formation
includes the Bakken Oil Pool, which has at least 5 billion barrels of
reserves.
"With 5 billion barrels of verified oil, the Bakken is really America's
richest source for oil," said Wyatt. "And it's much lower risk for the
companies who are tapping into it, especially given what happened with BP
earlier this year in the Gulf of Mexico."
One of Wyatt's Bakken stocks is up nearly 10% today, and 26% over the
last 5 days.
You can access Ian Wyatt's investment report on North Dakota's Bakken
HERE.
