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Time to go long crude oil?(if you didn't already)
smeagold
Posts: 1,429 Forumite
Many analysts believe oil prices this year will top $100 a barrel for the first time since 2008. In fact, some even believe they'll reach $150 a barrel, topping the record high set nearly three years ago.
"I believe we'll be looking at $150-a-barrel oil by mid-summer," says Money Morning Contributing Writer and Editor of the Oil & Energy Investor newsletter Dr. Kent Moors.
Rebounding industry, a weaker U.S. dollar and supply constrictions are a few of the reasons why oil prices are set to spike. But the biggest reason is that demand in emerging markets continues to grow wildly.
The International Energy Agency (IEA) forecasts global energy demand will rise to 88.2 million barrels per day (bpd) in 2011, up from 86.9 million bpd this year. Most of the new demand will come from China, whose economy expanded by 10.3% in 2010.
Oil demand in China is expected to grow 10.4% this year - the fastest rate of any country in the world.
http://www.marketoracle.co.uk/Article25917.html
"I believe we'll be looking at $150-a-barrel oil by mid-summer," says Money Morning Contributing Writer and Editor of the Oil & Energy Investor newsletter Dr. Kent Moors.
Rebounding industry, a weaker U.S. dollar and supply constrictions are a few of the reasons why oil prices are set to spike. But the biggest reason is that demand in emerging markets continues to grow wildly.
The International Energy Agency (IEA) forecasts global energy demand will rise to 88.2 million barrels per day (bpd) in 2011, up from 86.9 million bpd this year. Most of the new demand will come from China, whose economy expanded by 10.3% in 2010.
Oil demand in China is expected to grow 10.4% this year - the fastest rate of any country in the world.
http://www.marketoracle.co.uk/Article25917.html
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Comments
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I've been thinking about this for months.
In the long term the price of oil has only one way to go - UP and Up like the green balloon club on cbeebies.
What is a cost effective way of tracking the price of crude in an ISA wrapper? Can anyone reccomend a suitable ISA'ble ETF?0 -
Oil, metals and agricultural supplies are the three areas I see doing very well over the medium term. Do you see advantages to tracking the oil price directly over holding (funds of) shares in oil producing companies?0
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Be careful. There have been some major breakthroughs on cheap viable synthetic fuels recently. It is based on hydrogen encapsulated in a microbead which can be used in normal petrol engines. The best bit is there is no emissions from this fuel. http://www.gizmag.com/breakthrough-promises-150-per-gallon-synthetic-gasoline-with-no-carbon-emissions/17687/
With oil prices as they are countries will be keen to rid themselves of dependency on oil. Good for renewable energy companies which will gain support to provide the hydrogen in this country and abroad (with renewable and nuclear).
Just a consideration.0 -
Be careful. There have been some major breakthroughs on cheap viable synthetic fuels recently. It is based on hydrogen encapsulated in a microbead which can be used in normal petrol engines. The best bit is there is no emissions from this fuel. http://www.gizmag.com/breakthrough-promises-150-per-gallon-synthetic-gasoline-with-no-carbon-emissions/17687/
With oil prices as they are countries will be keen to rid themselves of dependency from oil. Good for renewable energy companies which will gain support to provide the hydrogen in this country and abroad (with renewable and nuclear).
Just a consideration.
From their site:
""Although ideal for our proof-of-concept work and potentially useful for the initial demonstrator projects it is not currently a viable commercial material: it is expensive to make and cannot be easily re-hydrided or chemically recycled."
http://www.cellaenergy.com/index.php?page=technologyProudly voted remain. A global union of countries is the only way to commit global capital to the rule of law.0 -
Whats the best way to buy oil ?Proudly voted remain. A global union of countries is the only way to commit global capital to the rule of law.0
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$1.50 for a US gallon of this fuel is not expensive, that is cheaper than petrol (pre tax). If you read they say the high temperature polymer (based on polyimide) encapsulation solves those problems.From their site:
""Although ideal for our proof-of-concept work and potentially useful for the initial demonstrator projects it is not currently a viable commercial material: it is expensive to make and cannot be easily re-hydrided or chemically recycled."
http://www.cellaenergy.com/index.php?page=technology0 -
$1.50 for a US gallon of this fuel is not expensive, that is cheaper than petrol (pre tax). If you read they say the high temperature polymer (based on polyimide) encapsulation solves those problems.
If you read the comments it doesn't look all that positive. Sounds like it a has a very long way to go, sadly. For people speculating on oil prices this year, i don't think it will have a greater effect than that of rising international demand from emerging markets combined with oil supplies dwindling and other unique market pressures, to say the least.Proudly voted remain. A global union of countries is the only way to commit global capital to the rule of law.0 -
If you read the comments it doesn't look all that positive. Sounds like it a has a very long way to go, sadly. For people speculating on oil prices this year, i don't think it will have a greater effect than that of rising international demand from emerging markets combined with oil supplies dwindling and other unique market pressures, to say the least.
Some of the comments have made a fatal flaw in that they haven't considered that renewables and nuclear can supply this. An additional flaw is they have assumed it would be made in this country. As it can be transported supplies can come from abroad. Some of the posters don't even know how hydrogen is made! Most of the comments are much more supportive.
Working in strong industry driven research projects myself and in areas similar to this (although not for fuel) it looks to be around 2-3 years away. You are absolutely right, it is not going to doing anything to this year's oil price. In the long term it will.0 -
Some of the comments have made a fatal flaw in that they haven't considered that renewables and nuclear can supply this. An additional flaw is they have assumed it would be made in this country. As it can be transported supplies can come from abroad. Some of the posters don't even know how hydrogen is made! Most of the comments are much more supportive.
Working in strong industry driven research projects myself and in areas similar to this (although not for fuel) it looks to be around 2-3 years away. You are absolutely right, it is not going to doing anything to this year's oil price. In the long term it will.
Interesting, could really change global power dynamic. Is it a British company ?Proudly voted remain. A global union of countries is the only way to commit global capital to the rule of law.0
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