Market turmoil makes it too easy to justify selling any
stock these days. While individual investors never profit
from their own
panic, it is a good idea to play devil's advocate with
investments.
Consider oil-linked fund
United States Oil (NYSE: USO). Though oil
still anchors our energy economy, you'll find a few of the
1,279
Motley Fool CAPSmembers weighing in on the investment
offering reasons to be bearish.
Here at The Motley Fool, we like to consider both the good
and bad sides of an investment. Below I've highlighted three
of the main bearish arguments on United States Oil. Be sure
to
read the bullish sideas well, and then weigh in with your
own comments below or rate United States Oil
in
CAPS.                                           Â
1. OPEC influence
OPECmay increase
output in an attempt to
keep oil pricesbetween $75 and $80 a barrel, according to
the organization's secretary-general. (Its members produce
about 40% of the global oil supply.) OPEC says prices are in
a comfortable zone right now and one
JPMorgan Chase analyst says that there's a
big incentive to keep prices from going too high, in order to
keep sectors like transportation dependent on black gold.
2. Peak gas
Although the International Energy Agency recently
forecast higher global oil consumption next year, compared
with a weaker 2009, some experts believe that the developed
world passed the point of peak oil consumption several years
ago. And
ExxonMobil 's (NYSE: XOM) CEO recently said
that
peak demand for gasoline has come and gone, as car
companies like
Ford (NYSE: F) focus on more fuel-efficient
vehicles. Â
3. Alternative fuels
Between
T. Boone
Pickensand gas producers like
Chesapeake Energy (NYSE: CHK) pushing for
more natural gas vehiclesand major energy companies like
ExxonMobil,
Chevron (NYSE: CVX),
BP (NYSE: BP), and
Valero (NYSE: VLO) taking an interest in
next-generation alternative fuels, some investors see
several threats to the long-standing dependence on oil.
To see more details of what CAPS members
are saying
nowabout United States Oil, just click on over to
Motley Fool CAPSand have a look -- or add your own
thoughts directly to this story in the comments box below.
And get a rundown of the bullish argument
here.
This article was originally published as
3 Reasons to Sell United States Oil Todayon
Fool.com
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reserved.
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