SOURCE: Stock Traders Daily

July 11, 2005 08:50 ET

XOM Enters China, UCL Likely to Become Chinese-Owned

NOTE TO EDITORS: The Following Is an Investment Opinion Being Issued by Thomas Kee for Stock Traders Daily.

SAN FRANCISCO, CA -- (MARKET WIRE) -- July 11, 2005 -- Oil is in play again today as the China-US debate heats up. Through a venture with Saudi Aramco, Exxon Mobil (NYSE: XOM) will acquire a 25% stake in a Chinese Oil refinery, which will produce 85 Million Barrels annually. This move comes on the heels of continued concerns about the bidding war for Unocal (NYSE: UCL), a US-Based producer and refiner of crude oil and natural gas.

A strong debate now seems prevalent on the heels of this news: Why should XOM be allowed to enter the Chinese Market for Oil if CNOOC (NYSE: CEO), a Chinese company bidding against Chevron (NYSE: CVX) for UCL, is being balked?

We believe, based on this news, that UCL is likely to be bought by CEO. We expect this deal to close within the next 2-3 months. Regulatory hurdles will be vast because CVX is likely to fight vigilantly to stop the proposed purchase of UCL by the Chinese Oil Giant, but unless CVX increases their offer for UCL shares, UCL is likely to be a Chinese-owned company very shortly.

Find out how to trade these companies now by reading the detailed trading reports for each of them on our Corporate Website:

http://www.stocktradersdaily.com

Thomas Kee, CRD number 2369405.

Stock Traders Daily, CRD number 111906.

Contact Information

  • Contact:
    Stock Traders Daily
    Thomas Kee
    (415) 999.9033