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The Organization for Economic Cooperation and Development (OECD) came out with a report that outlined how India and China will emerge to eventually become larger economies than the United States. In China's case, it will happen in the next 5 years, and for India, it will take another 40 years.

 

The United States will also continue to grow with the GDP per capita expected to double over the next 50 years from about $43,000 right now to $92,000 in 2060, according to the same OECD report. These higher incomes and living standards will increase the demand for energy.

 

That is why I am loading up on oil stocks and you should too. This thread will give you all the information on oil stock investing.

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To mean to be the bad guy but these are all "obvious" qualitative factors that dosn;t require much thinking.

 

oil = scarce

 

China and India = growing like crazy

 

However, theres more than those 2 things that determine the true price of oil, therefore it is very niave to load up on oil stocks on your premise

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BP's Rise To Profitability And Beyond

 

I have been analyzing big oil stocks that offer a good return on investment for a value investor. My analysis here is based on the profitability ratios in the financial statements of BP PLC (BP) over the last 5 years.

 

When a firm has strong profitability ratios, it portrays to an investor that it provides a good return. The profitability numbers that I came across for BP were very encouraging. Keep in mind, however, that this is just one of the many ways to analyze a stock.

 

Individual project risk is something that can do severe damage to an energy company. BP and its Gulf of Mexico oil spill is a prime example of just how bad it can get. As a result of the disastrous oil spill, BP had to fight just to stay in business by shedding assets and changing its structure and outlook materially.

 

The Return on Investment ratios also aren't as impressive when compared to the industry as a whole. BP is now completely exiting the renewable energy sector and this could help boost profit margins and return on investment ratios. It is the high-margin oil and gas projects that BP is hoping will generate higher returns.

 

BP shares are trading at 5 times 2013 EV/EBITDA and 8.5 times 2013 P/E. Equity analysts agree that BP is undervalued. I am going to have to agree with this sentiment even though the profitability ratios aren't particularly impressive and the price action is bearish.

 

Read more here: BP's Rise To Profitability And Beyond - Seeking Alpha

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BP's Rise To Profitability And Beyond

 

I have been analyzing big oil stocks that offer a good return on investment for a value investor. My analysis here is based on the profitability ratios in the financial statements of BP PLC (BP) over the last 5 years.

 

When a firm has strong profitability ratios, it portrays to an investor that it provides a good return. The profitability numbers that I came across for BP were very encouraging. Keep in mind, however, that this is just one of the many ways to analyze a stock.

 

Individual project risk is something that can do severe damage to an energy company. BP and its Gulf of Mexico oil spill is a prime example of just how bad it can get. As a result of the disastrous oil spill, BP had to fight just to stay in business by shedding assets and changing its structure and outlook materially.

 

The Return on Investment ratios also aren't as impressive when compared to the industry as a whole. BP is now completely exiting the renewable energy sector and this could help boost profit margins and return on investment ratios. It is the high-margin oil and gas projects that BP is hoping will generate higher returns.

 

BP shares are trading at 5 times 2013 EV/EBITDA and 8.5 times 2013 P/E. Equity analysts agree that BP is undervalued. I am going to have to agree with this sentiment even though the profitability ratios aren't particularly impressive and the price action is bearish.

 

Read more here: BP's Rise To Profitability And Beyond - Seeking Alpha

 

Vinayak,

 

I don't mean to sound like an A-hole as i said before. This is a trading forum. The notion of buying oil stocks, is really a no brainer in regards to value investing to be honest with you. As i'm writing this you actually just reminded me i should probably buy up some cheap oil stocks lol. But your approach to this is value vs trading.

 

Do you trade or invest? thats the real question

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Crude Oil Price Decline

 

Crude Oil prices in the world markets have fallen in April in comparison to how they were in March.

 

The decline of the average price of crude oil has been as much as $6.39 according to various reports.

 

At the London Brent, the price of a barrel of crude oil fell $6.11 in April in comparison to the previous month.

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TOTAL SA: Worth a Quick Trade?

 

TOT is currently trading at $50.11 and extensive fundamental analysis reveals that the stock is undervalued. The profitability ratios are not too bad and even the near term price action is encouraging for bulls.

 

TOT has generally better return on sales ratios than BP PLC (BP) and Royal Dutch Shell (RDS.A) over the last five years. Nonetheless, it lags behind industry leaders Exxon Mobil Corporation (XOM) and Chevron Corporation (CVX).

 

Total SA continues to explore for new sources of oil with tremendous success. Investors and option traders should keep a watchful eye on the company's dividend behavior over the next year and any big developments that may come out of its joint-venture with Qatar Petroleum.

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Supply outstripping demand for oil!

 

There is a lot of supply. Additionally, there doesn't seem to be much of a demand from China and inventories are high in the U.S.

 

I think oil could fall further. Market analysts have stated that there is more than enough gasoline to meet seasonal demand.

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Oil Bearish Long-term; Volatile Short-term to mid-term horizon

 

There will be a lot of volatility with the oil prices (WTI and Brent Crude Oil) with all the trouble we've been having in the Middle East with the Assad regime, etc. Check this out:Russia stokes fears of an arms race with threat to deliver anti-aircraft missiles to Syria's Assad regime - Middle East - World - The Independent

 

Also, crude oil prices had fallen a bit during the Asian trading session with reports about the declining health of the Saudi Arabian King Abdullah. There are now the rumors that he is 'clinically dead'.

Saudi Arabia is the largest producer of crude oil in the OPEC. There will be a meeting on Friday in Vienna in which production quotas will be discussed.

Crude oil prices went up yesterday and investors started profit taking placing downward pressure on the price of the commodity. Interestingly, US inventories has fallen according to latest reports. But this was expected.

 

Oil Prices Down Over the Long-term

 

The weak manufacturing data from China will hurt oil prices in 2013 as demand will now be much lower.

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OPEC Agrees to Maintain Quota at 30M Barrels a Day

 

OPEC has done as market analysts predicted even though there were strong hints that the oil cartel will attempt to curb supplies as oil prices have been dropping steadily.

 

For instance, Brent crude has fallen 8.7 percent in 2013 alone and it is now to trading at about $101 a barrel.

 

Nonetheless, the U.S. oil boom has created competition for market share in the Asian region. Additionally, there seems to be a rivalry developing between OPEC's top two producers Saudi Arabia and Iraq.

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Global Oil Supply is High, Sending Oil Prices Tumbling

 

Oil prices posted their biggest one-day drop in nearly two years Tuesday as a U.S.-led wave of crude has crashed into weak global demand, threatening the stability of some countries and providing an economic lifeline to others.

Global Oil Glut Sends Prices Plunging - WSJ

 

Brent crude at $80 would have effect of huge global QE programme

 

Oil companies like Exxon and BP are going to generate less in terms of revenues as global oil prices have been falling. It will be interesting to see how the oil stock prices trend in the coming weeks and months.

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Egypt's former petroleum minister Osama Kamal said global crude oil prices are set to fall drastically, predicting afurther erosion of as much as a third in the coming days. "I expect crude oil prices to touch $60 per barrel. This will impact several economies," said Kamal, who was in Mumbai to address the top Aditya Birla Group executives.

 

Read more at:

http://articles.economictimes.indiatimes.com/2014-10-20/news/55236607_1_osama-kamal-egypt-control-food-prices

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