TULLOW OIL - worth another look?

topcar
Every one of them have their price.

Oil prices are ultimately dictated by demand and supply factors. There are only two bodies-OPEC and Russia who could deliberately create supply shortages of the order that would boost prices and they certainly would not be doing that in order to reduce longer term demand. Historically, oil is cheap, and the industrial world can cope with $70 a barrel, its the security of supply that is the biggest worry.

To that end, the very recent resumption of talks between the EU 3 and Iran, over nuclear enrichment will become a critical factor in 2006. Given the stance of the extreme right wing Iranian president, I suspect the talks are virtually a formalisation of recognising failure and a prelude to the U.N. being forced by the U.S. to impose sanctions. IF it does and Iran retaliates with oil sanctions, then we will see oil at $70 overnight. So, IF the talks are brought to a final end, then oil companies could get an significant lift in quite short order. News on the talks are worth keeping an eye on.