I think it's going to keep rising into next week, but I think there will be another dip into the future. Many companies have been hoarding oil while it has been so cheap, so demand will drop a bit in the medium term.
Optimists have it that oil will jump $200 a barrel. Major instability in oil rich in the Middle East would see to that. Others say that despite bouncing back up a little, the prices will creep down further until the U.S shale industry is crushed. Since it might take a little bit of time, we should still enjoy the cheap oil prices and for those interested in investing, it's probably the right time to buy oil stocks so when prices jump to $200 . . .
I wouldn't even bother thinking in terms of days or even weeks. Think about months. This is the time to keep buying at lower levels and waiting for the good times to roll again.
If I could tell you for certain what this or that stock or commodity will do tomorrow, I'd be a trillionaire by now.
I think the Saudi's has found a reason to flex their control over the oil prices since King Abdullah's death. It has risen a bit... but there is such a strong force out there that is manipulating it.. or am I just a believer of a conspiracy theory?
I am seeing some downward pressure. China lowered imports of oil and as we all know the reserves are pretty much full. In the long term I'm sure oil will go back up but these next few days could go in a different direction. Still a couple of hours time to decide what to do today, but for the moment I think I will just keep my eyes open and see what happens. So no day trading today... not confident enough to play the decrease in price.
It fell two days in a row, although prices have already risen at the pumps due to recent spikes. It's hard to tell where it will go, but volatility is clearly here to stay. The question is how long for.
A bit of a conspiracy theorist. 30 years ago, the Saudis could control everything. But they quickly learned that all the people they thought they were controlling were actually cheating. They would tell people to lower production in order to increase prices, but most countries didn´t do it, and only the Saudis would cut production, and then lose marketshare to their ´friends´ who basically lied. It is even worse now with Venezuela and Russia having such huge financial problems in the near term.. there is no way they can cut production right now, in fact, they are doing everything they can to increase production. Meanwhile the USA has mostly become oil independent, and at any time prices get above about $80, they will become exporters also. Finally, the last thing to remember is that there is a ton of production that is off-line at these prices because they are unprofitable, but if oil rises to, say, $80, most of that production will become profitable and will increase supply at the same time the higher prices are decreasing demand. There is a LOT of resistance right now for prices going higher. The only thing that could really make it happen is some unusually serious war.
I think the price of oil will steadily rise although admittedly I could be wrong. Slowing global demand is a major factor however I also think one must consider the fact that the fed will not be raising rates for quite sometime IMHO. So, the price of oil will need to reflect the weaker dollar and rise as a result.
At the same time there is a growing demand for alternative fuels such as solar, wind, tidal, geothermal, hydro energy. My personal opinion is that fossil fuels are on the decline over the long term and electricity will enjoy a second coming so to speak. Now the increase in demand for electricity will likely not drive prices and thus profits up...at least in that manner. Because new sources of energy are coming on line at a pace faster than the demand. But in the end profits will rise due to economics of scale. As electricity becomes the dominate energy source for cars, boats, and even planes, demand will rise and more electricity will be sold. Therein lies the potential for profit. Find those who are increasing the efficiency of alternative energy conversion to electricity and invest in them. There is where the BIG money lies. Always go with dividend stocks. Your getting money two ways instead of one with them.
