2007 will be the year of the oil mini-glut. World oil demand is forecasted to increase by 1.3 mil bbls/day from '06 to '07, while production from the former Soviet states will increase by 2.9 mil bbs/day -- not to mention increased production in North America from the recent drilling and exploration frenzy. The Saudis will be able to throttle back production, giving the world cushion to absorb temporary disruptions in Nigeria (terror), Gulf of Mex (hurricanes), Prudhoe (pipeline). A sampling of short candidates for the watchlist: http://stockcharts.com/candleglance/?NFX,PXD,PLLL,FST|D|G I'm not suggesting shorting these today -- energy stocks are short-term oversold. I'm suggesting watchlisting them and wait for next overbought thrust. Looking for a medium-term correction in oil, probably $50-ish, early 2007.