Will Oil Remain Weak and Hurt ExxonMobil?
June 24th, 2010
There is much ado about the weakness of the commodity sector, in particular oil, right now. Fears of a faltering global economy seem to be driving all commodities, with the exception of gold down. The reality is, however, perhaps much different. One of the first reasons is a potential squeeze on supply because of the BP oil spill. Exxon investors are in a good position to gain from this unfortunate accident. The second reason is the potential for massive inflation because of the American Federal Reserve’s massive growth in the monetary base. These two factors really could work independent of a faltering economy to push oil and the energy sector back up, making ExxonMobil a particularly nice looking investment right now.
