Two years ago Colombia was the hottest international oil play in the world (for Canadian investors), with big wells creating big valuations and stock runs that left investors hungry for more. Now, these stocks have not only fallen to earth. What happened?
The final trading session of this once again indecisive week in gold commenced with a price drop. The yellow metal erased Thursday’s gains and retreated to under $1,575 in slow pre-market action as the US dollar picked up some steam.
Much like the Republican attempt to force Keystone XL to fail early on and force a vote loss on the Obama, the issuance of the first Texas permit for the southern extension is but a Democratic bone to big oil and a job-hungry public. It has little marrow.
Examining the macro-economic environment is how the publisher of the Big Picture Speculator likes to begin his stock-picking process. However, his understanding goes beyond headline news to reveal surprising investment themes with profit potential.
This was an up-and-down year for oil prices, but don't expect that pattern to repeat in 2012. No, next year, the trajectory for oil prices will be far more linear - and it's pointed up. In fact, we could even see $150 oil by mid-summer.
With US President Barack Obama expected to approve the long-delayed Keystone XL oil pipeline late this year or early in 2012, several companies already producing in the Canadian oil sand fields stand to benefit.