Cairn india is trading at 255 with market cap of 48000 cr. Company doesn't have any real earnings in past to talk about but Rajasthan fields have already started producing oil.  P/E is not a real measure to come for any valuation on this stock. How to value this .. is it expensive , cheap . Is there any more potential in this stock.

Global economy may not be as fragile as we thought initially and particularly India and China consumers keep their pocket open. There is good corporate spending in India. Yes Dubai was a setback . I think OIL can top 145$ in 3 years. 2010 can see oil above 100$ but may not breach 140 level yet. Plenty of crude is being pumped around the world that needs to be absorbed before a real supply tightness.

The domestic crude oil production fell for the 10th time this year in October led by a drop in the output by the largest oil and gas explorer ONGC, according to the data released by the petroleum ministry.

Crude oil production slipped by 2.2% in October to 2.85 million ton compared to 2.91 MT during the same month last year, the data showed.

Crude oil traded below $78 a barrel in New York after falling yesterday as the dollar strengthened and amid concerns about the pace of recovery in the US, the world’s biggest energy consumer.

News URL:http://www.bloombergutv.com/stock-market/commodities-market-news/38019/crude-oil-trades-below--78-.html

After touching almost $80 crude corrected on some news that OPEC members will agree to increase production at a December meeting.

Why not , if the price is high suck more crude out and sell em before it fall again. Do you think this decision by OPEC will have much impact on crude prices in long run. May be a little bit . But OPEC was not able to do anything when crude dipped to $35 last fiscal.

Buy Cairn energy to take advantage of crude rally.