High Gas Prices Hit 13-Day Record at $3.80
May 20th, 2008 | By Contrarian Profits | Category: Featured, Financial NewsHigh gas prices continue to affect American motorists, staying at record highs for the 13th day in a row, according to the AAA.
CNN reports that US gas prices have now risen for 14 straight days.
According to the report: “For the first time since 2002, Americans plan to drive less on the holiday weekend than they did the year before, with high gasoline prices in a weak economy a prime reason.”
A great way to profit from skyhigh crude oil prices, which is causing high gas prices, is to invest in Canadian tar sands stocks, says Brian Hunt in DailyWealth.
“When oil is trading for $60 a barrel, mining the tar sands is a good business. When oil is trading for $80, it’s a great business. And when oil is trading for $120, it’s a money machine.”
Christian DeHaemer in Taipan Daily has another great way to play spiraling oil prices: natural gas.
“On Monday,” says Christian, “the Russian giant, Gazprom, shut down a quarter of its gas supply to the Ukraine to force the country to pay off a $600 million debt. This was settled today, but underscores Europe’s worries over the reliability of natural gas coming from Russia.
“The last time Gazprom played this game was two years ago, when the Ukraine went for three days without gas and pipelines in Europe saw a drop in pressure.
“Europe gets 20% of its gas from Ukrainian pipelines. The Ukraine, in turn, gets its gas from Russia. It’s a system that leaves Europe beholden to Russia, much like the U.S. is beholden to OPEC.
“As Lord Palmerston once said, “Nations have no permanent friends and permanent allies, only permanent interests.” This means that Europe is looking for other suppliers. North Africa fits the bill, and a pipeline is being built to Spain.
Read on here to learn more about ways to profit from the situation.
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