Oil prices going Higher - Natural Gas prices 8/07/08

Oil is up almost $3 this morning to $121.35.....as I expected, the flush under $120 was short lived. People have been preaching under $100 oil for the last few days...and this is the second significant bounce we've gotten since Oil has gone under $130 in the past few weeks.

To me Oil seems like it is putting in a bottom here. People are kidding themselves thinking oil will go to $85. Yes, at $148 we have seen demand destruction but there is still a lot of demand and that is only going to get worse in the coming years.

People that are having a hard time with Oil prices going up should be putting money into the United States Oil Fund ( USO ) so at least when you are getting killed at the pump you are making money back as a hedge. This stock can be bought be anyone!

I personally think we will see $150-$160 oil in the next 6 months as winter approaches.

Natural Gas has gotten killed over the past month....from $14 down below $9...and that to is really to bounce back. Today it is around $9. I have bought stocks like Chesapeake Energy ( CHK ) and XTO Energy ( XTO ) They are huge operators in the shale plays around the United States. The Haynesville Shale has been huge and will continue to get even bigger. If Natural gas prices stay around $9-$10 this quarter, Chesapeake will make about $2 billion dollars this quarter on hedging activity since they lost 2 billion last quarter when Nat Gas was higher. This alone would give CHK stock a pop. Remember this when they report earnings in three months!