Schaeffer's Daily Contrarian: Hess Corp. (HES) Can't Rebound Until a Bottom is Found

CINCINNATI--(Business Wire)--
Investors looking for a continued run higher in oil prices were met with a
surprise last week, according to this BusinessWeek article, as crude prices
tumbled roughly 10%. Speculating on the situation in the oil pits, Fadel Gheit,
an analyst at Oppenheimer, believes that oil prices should be between $45 and
$55 per barrel, with $55 being "the speed limit" even if demand rebounds due to
the excess global supply. However, Daniel Rice, portfolio manager of the
BlackRock Global Resources Fund, sees things differently.

"[Oil stocks are] saying we're in a longer term -2% GDP world. If you think
differently, you'll have a lot of value [in oil stocks]," he tells BusinessWeek.
"I think the world will be at +2% GDP growth by the middle of 2010, powered by
China." That growth rate, Rice says, justifies a price of $80 to $90 per barrel,
giving oil stocks the potential to double or triple in the next 12 months.

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Schaeffer's Investment Research
Joseph Hargett, 513-589-3800
jhargett@sir-inc.com

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