Fadel Gheit Oil Quotations

We reiterate our buy rating, as we believe the upside potential is greater than the downside risk from sharply lower oil prices given the strong demand, tight supply and lack of spare capacity.

With the right investment environment and under the right government, Iraq could increase production by a million barrels a day every year for the next 10 years, ... It could be the largest oil exporter in the world, eclipsing Saudi Arabia.

Losing the Saudi oil would immediately shock the U.S. economy to the worst level in decades,

Right now it's a squeeze play for oil industry, ... But if they can get by from here to February, I think the coast is clear.

But when oil goes up, stocks go down. Crude prices have to crash, but it won't happen until about six weeks after the election. We'll see a lot of activity no matter who's in the White House.

Barring any serious supply disruption, there is plenty of oil and prices could drop if the weather stays warm. But we have tremendous speculation in the markets driving prices, so there is no way to guarantee they will continue to fall.

Given the current market fundamentals we expect average prices for both oil and gas this year to be significantly above 2005 record levels. As a result, we expect 2006 earnings to be above 2005 record levels.

I think OPEC is showing tremendous strength in keeping oil prices firm, but they cannot push it much further, ... If they do, they will have to contend with things that they do not want in the long run, like possible economic troubles.

The problem is not lack of oil supply. It's lack of oil refining capacity, ... You can give me all the oil you want, but our cars do not run on crude oil.

The demand for gasoline is very strong. And obviously now people are thinking ahead. And if we have a cold winter, we'll see a run up in home heating oil to above $2 per gallon,

The conventional wisdom was that we were going to see immediately after the terrorist attack a spike of oil prices,

We're not likely to see oil prices going lower until there's resolution on the Iraqi front,

But oil is unlike all other commodities, ... It is a political commodity. We will go to war to protect it, to ensure adequate supply, which makes it very, very hard to predict.

There is speculation that Texaco would be the next takeover target, but on fundamentals, Texaco is a very cheap stock, very high leverage to both oil prices and gas prices and both moving higher,

We could suddenly have oversupply and weaker demand, and that will probably bring oil prices down on their own,

We could say we were releasing oil to drive prices down until they get to $25 a barrel, ... Then OPEC could say it'll cut production to keep prices up. It's a very delicate subject to tinker with.

The surge in oil prices took companies by surprise. They didn't expect the windfall profits and were ill prepared to handle the instant wealth. It's like winning the lottery.

Our economic dependence on oil is much less than it was even 10 years ago. If inflation comes, it won't be as big a hit as it was in the '80s.

Oil prices have been exceeding the most bullish forecasts for the past year and a half, and that's not driven by industry fundamentals, but largely by speculation and fears of a potential supply disruption,

Oil prices, ... are probably going to go over $26, which will mark the highest level outside the Iraqi invasion of Kuwait in 1990.

Any cooling in economic growth immediately will take oil demand down so one would expect the price will come down.

The bulk of the replacement in the last three years was through acquisitions. The easy oil has been discovered.

As long as oil prices remain high, oil stocks will continue to outperform the market in general.

This is an industry in crisis. Every oil company will reduce their production forecast as lower spending will immediately be followed by lower production and lower reserve replacement.

The U.S. uses 20 million barrels of oil a day. Prices are currently inflated by about $15 a barrel, and that additional cost is effectively a $300 million dollar-a-day tax on Americans, eating away at disposable income for people in this country,

This global tension, led by the stalemate between Iran and the U.S., could lead to oil prices about $80. People are really afraid that something is going to happen, and soon.

This administration has created more profit for the industry that it has made since its inception. The oil industry will be the big winner during the (Bush years). We can count on the fact that oil prices are not going to go lower. If they move they will only go higher.

Also, the president is making speeches trying to talk oil prices down and say the situation is better, but talk won't change the underlying fundamentals. Demand is still strong, supply is still tight. So even if perception changes for a bit, the situation is no different.

I truly believe that oil prices have been artificially low for so long that we're now beginning to pay the real price, ... But if gasoline hits $6 per gallon, I guarantee you'll car pool with your next door neighbor, even if he smells.

The warm weather in the U.S. may be cutting demand for oil by 1 million barrels per day.

A rise in oil prices stifles economic growth, ... There is a close correlation between gasoline prices and retail sales. Paying more per week for gas means less disposable income, which impacts retail and the purchasing power of the consumer, as does a higher average home heating bill due to the cost of fuel oil.

A rise in oil prices is not good news for the equity market or the economy.

Investors need to think first, and not put money randomly into oil stocks,

High oil prices will come and haunt us.

Higher oil prices stifle economic growth. There becomes a situation where manufacturers will have to charge consumers more for the increased cost of fuel. The economic recovery right now is very tentative and it can't be hit with higher oil prices.

I do believe we are in an oil price bubble. It will eventually burst. The question is not if but when.

The easing of the tensions in the Middle East has calmed down the oil market and there appear to be no immediate plans to conduct military action against Iraq. So that has eliminated the second point of worry,

The companies will have to work hard to earn their performance. They are not going to get a free ride on the back of rising oil and gas prices, which are likely to be flat. What will excite investors are those companies that are able to grow production, add reserves, control costs, raise dividends or buy back stock.

The market is therefore focused on two things: No additional supplies coming from OPEC. The other factor is that we should be entering what is a high demand period for oil products with the start of the summer season,