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Big Oil strikes new all time records

July 18th, 2007 · No Comments

With the price of oil stubborningly above $70/barrel (and currently at $75/barrel), it will mean more pain at the pumps. And this is without a major gulf coast hurricane yet for the hurricane season. As predicted and hinted at back in my May blog (as well as blogs going back years), big oil is a sector you need to be in for the long term. As expected, ExxonMobil (NYSE: XOM) continues to perform well with shares at an all time high of $91. Several analysts have recently upgraded the stock, with one plopping a $99 12 month target. I do expect another psychological impetus for the stock, which is a 2 for 1 stock split (although, shares technically aren’t worth any more after a split). The company has traditionally split its stock any time it nears the $90-100 range, but predicting when the announcement will come is anyone’s guess. As before, I remain long term bullish on the oil sector, although an overall pause in the rally should happen fairly soon.

ConocoPhillips (NYSE:COP) has also performed well, and for a short time this past month even outperformed ExxonMobil, although it has pulled back a bit in the last week. BP (NYSE: BP) continues to be an overall laggard given its company specific problems, although it is curently sitting near a 52 week high (but has not surpassed its all time high).

Tags: Stocks