In addition, this winter's warm weather reduces the demand for oil and gas, and inventories of oil built up as protection against Y2K-related problems will have to be used up. Light demand and hefty supply will be a drag on the price of oil. Any form of momentum analysis is going to give Exxon a subpar rating right now, but the stock eventually will prove to be a great core holding. It is impossible for Europe, Asia and the United States to be growing strongly at the same time without creating a much tighter oil market, and even a small increase in demand could quickly use up available overstocks. Exxon has a sterling balance sheet, and, as the world's largest oil company, it is best positioned to capitalize on rising oil prices.
Profits are strong.
Inflation is tame. But you still need a smart strategy to cash in, and Michael Sivy provides one. Time Inc. All rights reserved. Reproduction in whole or in part without permission is prohibited. Our Privacy Policy .