With oil prices touching record highs, energy stocks have been top performers, a
situation that may persist because of continued turmoil in the Persian Gulf region.
Crude supplies are very tight, with a lack of productive capacity. Worldwide, there is
1 to 2 million barrels per day of excess production capacity in a world that’s using
80 to 81 million barrels per day. Because of this strain on capacity, oil prices are
staying near $40.
The bottom line: the days of $15 to $17 crude won
