Since peaking at $115.19 in June, the price for a barrel of Brent crude has tumbled over 40%. At its low point, in mid-January, it fetched $45.13, a full 60% lower than its high:
The plunge has been so steep that, due to a futures market quagmire known as contango, BP (BP) would rather store $1.25 billion worth of oil at sea than sell it.
For bears, the situation is vindicating. For bulls, it's a rare opportunity to build a position in energy on the cheap. For consumers, Goldman Sachs economists estimate, it may as well be a $100 billion tax break.
But what about the long term? Will we see more wild volatility and nosebleed highs, as we've come to expect in the past decade? Or is this the new normal? After all, $60 oil is not terra incognita: adjusted for inflation, the monthly average price per barrel of imported crude stayed below that level for 20 years:
The Supply Side
The United States
The American shale revolution is among the main culprits behind oil's swoon. Between 2011 and 2013, the United States overtook both Russia and Saudi Arabia to become the world's largest producer by total oil supply:
See it all @ http://www.investopedia.com/articles/markets/051115/long-game-oil-2020.asp
How Investors View the Differences between Tangible and Intangible Assets
written by: John Garger•edited by: Michele McDonough•updated: 5/28/2010
The value of intangible assets can be much more variable than tangible assets. This variability increases the likelihood of a discrepancy between book and market values. Learn about how investors deal with the differences between the book and market values of tangible and intangible assets.
Tangible vs. Intangible Assets
Financial statements are historical documents that show what a company was worth at one point in time. Because of standard accounting practices, an asset must be recorded at the value for which it was purchased. Changes in markets, currency, and economic conditions all contribute to discrepancies between book and market values. The longer an asset is held by a company, the greater the chance that discrepancies exist.
One factor that affects the market value of an asset is intangibility. An intangible asset is one that does not have a physical form but provides value to the firm nevertheless. Examples of intangible assets include contracts and patents, i.e. assets that cost money to acquire but do not have easily-accessible markets through which to buy and sell them. Unlike tangible assets like machinery and automobiles, the lack of secondary markets increases the risk that the intangible asset can not be liquidated at a reasonable price.
Though old, it's interesting > http://www.brighthub.com/office/finance/articles/19313.aspx
I hope you had a great weekend, it's time to relax.
