Monday, September 22, 2008

Robert Hsu, oil prices and USO

Original post date September 12th
Copyright content REMOVED.

Inside China Dispatch, Robert Hsu's free newsletter, arrived yesterday.
This time Mr. Hsu is writing about oil prices.

Dear Fellow Investor,
We're in the heart of hurricane season here in the United States, and three named storms—Gustav, Hanna and Ike—have already threatened our southern borders. And there's still two and half months left in the season.
What's unusual about this year's hurricane season, though, is that oil prices are tumbling, not moving higher. Over the years, we've typically watched crude oil per barrel skyrocket as hurricanes threatened oilrigs in the Gulf of Mexico.
But right now, even as Hurricane Ike is strengthening and moving towards refineries and offshore drilling operations in the Gulf, crude oil continues to drop. From its high of $147 per barrel in mid-July, crude oil has declined to $101 per barrel today. That's a 31% decline in about seven weeks!

That 31% decline is very close to Mr. Hsu's USO shares. He bought USO on June 30th at $113.73 and yesterday USO closed at $81.49. Another -28% for Mr. Hsu and his [REMOVED] paying readers.

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