And here comes oil... I've been saying this for the past few months. The price for a barrel of crude hit $58.16 momentarily and is now hovering just under $58.00.
Oil can't stay at the current levels. It's impossible because Americans have short term memory and start using gas like it's no big deal after they pay around $2.00 a gallon for a few months... also, OPEC can cut production to get prices back up to their goal of $75.00 a barrel. We need oil... and until there is an alternative energy that replaces it... there's no where for it to go but up. Like a hot air balloon.
Read more here.
I just wrote about this yesterday, but wanted to throw in another reminder. Oil is too cheap around $50 per barrel. Check out the article from yesterday and from previous posts.
Read more here.
Oil is still hovering around $54 a barrel and oils stocks are priced assuming around $40 to $45 a barrel. This creates a great buying opportunity for stocks like British Petroleum (BP) with a 7.7 percent dividend and ConocoPhillips (COP) with a 4.4 percent dividend.
Until a viable alternative energy is found, we are dependent on oil. Oil is used in countless products, from your shoes to your Tupperware... almost everything includes a something that is petroleum based. And you know cartels are illegal in the United States for a reason... they can alter and fix prices by changing their output (supply). The Organization of the Petroleum Exporting Countries (OPEC) is a cartel of twelve countries made up of Algeria, Angola, Ecuador, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, the United Arab Emirates, and Venezuala... and OPEC doesn't want to see cheap oil. Their goal is a price of $75 per barrel and it's only a matter of time before this is achieved. So buy some oil stocks that pay dividends while oil is cheap and you'd be laughing all the way to the gas station with a pocket full of cash to buy some unleaded... I would say take it to the bank, but who knows if they'll be around.
Read more about oil here.
Here comes summer, the days are getting longer and people are in a better mood for no reason at all (in regards to the economic situation). Oil was down to $30 something a barrel only 2 months ago and has slowly crept up over $50. Has anyone else noticed this? It's the start of the next oil bubble... only this time it's not a bubble. Gas should be around $4.00/gallon. This is the only way that makes Americans actually think about whether or not they are driving the 3 blocks to the ice cream stores. The short-term thinking in this country is evident by the fact that SUVs that are back in demand only a few short months after the "gas crisis". This isn't the first time it's happened either... remember the crisis in the early 70s? A lot of the same issues cam up back then and what did we do? Made a lot of suburbans. Well done.
There is a limited supply of gas and demand will keep rising so please give me a valid reason that prices will not head back towards $100 a barrel. It doesn't matter if we've hit peak oil production or not, oil is a limited resource and we need to use it wisely. Green energy needs to be a priority whether gas is an arm and a leg or only a thumb or even pinky. That being said, no matter how you slice it, oil companies are going to profit... BIG. Start stocking up on oil stocks and watch your investment increase just like gas prices will this summer! Don't be afraid to check out BP, COP, STO, and XOM.
Let's be honest, we have cheap gas in the US. It surely can't last. As of today the average price of gas in the UK is 94.5 pence/liter. This is equivalent to $1.39/liter. And we're talking liters here... 1 Pepsi Big Slam. Which can be purchased for a similar price ($1.49 on the link).
A liter is not very much. There are 3.79 liters in a gallon. Let's do that math. (Math being done...) People in the UK are currently paying $5.27/gallon for gas. This is cheaper than a gallon of Organic Milk (a renewable resource). So is gas really that expensive? Why not have expensive gas so we actually start thinking about whether or not we walk or drive the 3/4 mile to the video store.
Oil is our most valuable resource and until we come up with an efficient alternative energy source we're dependent and solely reliant on black gold. We have the highest standard of living ever for a reason... we're borrowing millions and maybe even billions of years of stored energy and using it all within a few hundred years. Supply and demand will eventually result in sky high oil prices and Americans will be complaining about $5/gallon gas that Europeans are currently paying. I figure it's better to start paying that now so my grandkids have some left.
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