U.S. Oil production
This weekend, Barron's got a lot of attention for predicting another oil surge to $150.
We summarized some of their key points here, though basically it comes down to: strong demand growth coupled with mediocre supply growth.
In a note out today, Oppenheimer's Fadel Gheit and Daniel Katzenberg offer 5 thoughts on $150 oil:
  • The last surge to $148 oil was caused by speculation. Another such a move would likely be caused by fears of supply disruption, not strong demand.
  • $150 oil would cause $5/gasoline and be a brutal shock to the US consumer.
  • $150 oil would almost certainly cause politicians to get serious about a new energy policy.
  • The biggest winners: Producers of primary sources of energy, and the companies servicing them. Losers would be consumers, as well as transportation, chemicals agriculture, and food.