Tuesday, March 08, 2005

Stephen Leeb on Bloomberg 3/7/05.

Stephen Leeb of Leeb Capital Management and the author of "The Oil Factor" (see link in sidebar) was on Bloomberg radio yesterday.

Among his observations on oil:

- The December deferred contracts are at new highs, suggesting oil isn't going to drop deeply in price.

- When asked when he would become concerned about oil prices and their effect on the economy, he suggested this would start at $65 a barrel.

- When asked if we were at the point where he would suggest avoiding oil stocks, he said no.

- Wall Street oil analysts are still forecasting a decline in the price of oil to $35 - $38 a barrel, where oil companies would still make healthy profits, but because of the chronic gap in potential supply vrs potential demand, Mr. Leeb doesn't agree with this thinking.

- He believes that for the next 3 -5 years oil stocks will still be an attractive investment area.

You can read an interview with him from about a month ago here.