Geo-political tensions are mounting in the global energy game. And that could make investing in oil right now the trade of the year, says Manraaj Singh. Buying shares of oil majors is a good move now. But Manraaj says quality mid-sized oil companies are best placed to return big profits in the next oil bull run.
It was cloudy in the Algerian city of Oran on Wednesday…and a fairly pleasant 14 degrees in the open air… But the assembled leaders of the OPEC oil exporters’ cartel must have been feeling rather hot under the collar. Since hitting a peak of $147 in July this year, the price of oil has fallen by about $100. That has put the oil exporting countries under a huge amount of pressure. And now they are determined to drive the price of oil back up again.
Some commodities are due a strong rebound, says Manraaj Singh. The underlying fundamentals are largely unchanged from July, when many resources were posting record highs. Manraaj says crude oil prices could double by the end of 2009, while agricultural prices will also soar.
China’s economic rescue programs could be devastating for American investors, says Manraaj Singh. The country is sitting on $2 trillion in US dollar reserves. And it will likely sell a large chunk of this to fund its domestic bailout. Manraaj says this makes US dollar-denominated investments a ticking time bomb.
Although the EU and the US are in recession territory, prospects for growth in Asia remain strong, says Profit Hunter’s Manraaj Singh. This will be vital in sustaining global energy demand. It will also keep coal, the biggest source of energy for electricity production, in a long-term bull market.
Sugar could be the next commodity to soar in price, says Profit Hunter’s Manraaj Singh.
The price of sugar has risen 37% in the last year, and this was with a huge surplus. Next year, droughts in India and rains in Brazil — the world’s two biggest sugar producers — could create a shortage in the market.
Manraaj says these supply shocks have not yet been priced into the market, meaning sugar could be at the start of a huge rally…
OPEC nations, reports the Financial Times, earned as much in the first half of this year as they did in the whole of 2007.
According to the report, member nations pocketed a staggering $645 billion in the first six months of 2008, just under the record $671 billion they earned last year. This puts OPEC nations on track to earn a record $1,245 billion this year, despite the recent 20 percent drop in oil prices, as any price drop will be offset by an increase in demand.
Profit Hunter’s Manraaj Singh calls it the “biggest transfer in history.”
Rumours are flying of a deal between the government and opposition in Zimbabwe…
As we hear it, Robert Mugabe will become the ceremonial president. Morgan Tsvangirai will become executive prime minister.
That’s precisely what we want to see. Because we have a direct stake in the outcome.
With the price of oil shooting through the roof, one of the most fascinating questions is just how much all the oil out there is actually worth. The other big question is how do you get your slice of it?
Asian markets look set for a rebound: here’s how you could profit from it.