Oil is trading well over $70 a barrel – at its highs for this year – and just off nine-month highs of $73.20, seen last October 21, oil has been steadily rising. Oil prices have risen nearly 100% since their $38 a barrel lows seen last January.
Keith Fitz-Gerald says investors have the chance to profit from the contango phenomenon in oil markets. The implied higher future oil prices mean an opportunity to buy oil-related ETFs now at a bargain price. For a safer option, Keith picks two oil transportation companies that pay healthy dividends.
It was just last summer that everyone was talking about the outrageous prices of gasoline. But today the conversation has done a full 180 – prices couldn’t be cheaper. But after falling 73%, is oil a screaming buy?
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.
A great business will always have clients and will always get paid, says Justice Litle. That’s why Key Energy Services (NYSE:KEG), the world market leader in maintenance of oil and gas wells, is in a great position. The company is growing rapidly and has a healthy balance sheet. Best of all, it is hugely undervalued at today’s price, meaning a chance for investors to triple their money.
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.
It’s inflation or die for global central banks, says Eric Roseman. The market is pricing in a deep recession and a stretch of deflation. But in the coming year, these desperate reflation policies will work. And when they does, inflation-hedging hard assets will soar. Eric says this makes now the perfect time to accumulate gold.
Government mulls mortgage price-control plan… who needs the free market anyway? Dan Denning on the true meaning behind the recent bull market in bonds. Stocks rally on Beige Book release… did the Fed send us the wrong copy? Bill Gross on stock evaluation for the Brave New World of tomorrow. Byron King with anecdotal evidence that oil is well oversold.
Reserves of high-grade oil are in decline, says Byron King. Other hydrocarbons will be required to meet energy demand over the coming decades. But the cost of extracting and refining these resources is much higher than the current market price of crude. And that’s why cheap fuel is definitely not here to stay.