While everyone is focused on what Obama will do with green energy, it is pointed out that Canada is the largest, nearest, most reliable, and friendliest source of oil the U.S. has. Obama would be smart to enhance that relationship even further.
It’s become apparent that Israel’s land war and Russia’s childish power plays aren’t driving gas prices up. In fact, the price of crude sank 6% to $38.00 a barrel this morning.
Oil prices have fallen 70% since hitting a record $147.27 a barrel in July, which means in just five months, crude has given up all the price gains it made in the past four years.
Oil prices could fall as low as $20 a barrel in early 2009, says Jason Simpkins. But don’t expect these low prices to last long. Dwindling investment will prompt a longer-term supply crunch, which will send crude to new record highs. Jason gives seven ways to profit from this coming spike.
Crude looks like it is entering its own type of recession this year, with the International Energy Agency predicting a fall in oil consumption for the first time in 25 years. But David Newman still thinks there are huge profits to be had in the oil industry. He recommends an Oil & Gas ETF (NYSE:IEO) and Oil Services ETF (NYSE:OIH), using a ‘protective put strategy’ to cover against downside risk.
Commodity prices have plunged from the record highs they hit earlier this year, but in a recent interview with Bloomberg, investing guru Jim Rogers said he is still bullish on commodities, which he expects to take off as soon as the clouds of the global recession lift.
Oil is still one of the best bets for long-term gains says Greg Guenthner. In the midst of blind market panic, investors are forgetting that crude is a finite resource facing unquenchable demand. It will rise to record highs again. And when it does, oil stocks will soar.
Oil was given a lift yesterday. But at $81.19 a barrel, the black goo is still almost $70 from its July peak.
Greg Guenthner isn’t sweating it.
Oil prices have been caught up in widespread panic selling of recent months. It remains a scarce and essential commodity. This means it is only heading in one direction over the long term.
Greg recommends following oil guru Richard Rainwater’s cue and buying into oil stocks with both hands.
“Some things leave a mark, some leave a welt and some leave a scar. You can safely put the US Department of Interior’s Mineral Management Service into the scar category,” says Andy Carpenter. “As in hee hee hee, ha ha ha… from now on, the words mineral, management and service strung together in series will always evoke a hearty laugh from me.”
Gas prices have soared in the aftermath of hurricane Ike due to damage inflicted on major Gulf Coast refineries. Unleaded regular has risen 17 cents since the storm hit to reach $3.842 a gallon. Money Morning’s William Patalon III says gas shortages from a tough hurricane season are likely to affect much of the Southern US.
