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When the OPEC nations meet in March, the plan is to cut oil production again.  OPEC is trying to push oil prices to over $70 a barrel, where current prices have been between $35-$50 per barrel the past few months.  Since the start of the worldwide recession, oil prices have dropped from a high of $147 per barrel down to current prices at $40 per barrel.  OPEC has been determined (although so far unsucessfully) even during this recession to try and cut back to keep the bottom of oil prices at $70 per barrel.

The Dow continues it’s march down as it’s almost below the 12,000 point mark.  Oil prices continue to rebound from a quick drop.  Every time oil drops a little, it keeps moving to higher highs in this oil bull market.  Dow stocks are starting to look very good to value investors.  While the economy might keep them down for a few years, stocks like General Electric (GE) are paying investors 4% dividends while continuing to increase earnings during the tough part of the economic cycle. 

Oil increased over $10.50 a barrel on friday, just after a $5 increase the day before.  The two day total of over $15.50 will be seen very shortly at the gas pumps as prices continue to hurt the consumer.  The oil turmoil over the high energy costs has fueled high speculation in solar stocks.  First Solar (ticker FSLR) has a high this year over $300/share with expected earnings of less than $3/share.  Next year it’s earnings are expected around $5.75/share.  With price to earnings ratios of $50 - $100/share, you have to wonder if there is a hugh bubble starting to form in the Solar stocks.  Will the solar stocks in 2008 be the internet stocks of 2000?