Price of Oil is Down. It's a Good Time to Invest in Oil Commodities!
The beauty of the market, whether it's commodities, mutual funds, or just plain ‘ol stocks, is that they never fail to surprise me. Only a month ago, I wrote an article about oil and why (based on analyst's opinions) the price has increased so much, going up to $147 per barrel back in July. Well, just four short weeks later, oil has come down to under $108 per barrel. How in the world does oil spike up so quickly? More importantly, how does it plummet so drastically? Oil prices have decreased over 25% in the last four weeks, which makes me laugh when I think about all of those big shots from Goldman Sachs and such who predicted that oil will hit $200 by the end of summer. If you want to find some of these articles, simply go to 104Oil.com and you'll find hundreds of them and others that are related.
Of course, there are a number of reasons (based on analyst's opinions from articles I found on 104Oil.com) as to why the price of oil has decreased so much. The economy of "powerful" countries, such as China, is weak and in jeopardy of a recession. Demand for products has decreased due to these countries having weak economies. Furthermore, specifically with China, the currency there has increased in value, which obviously makes exports less desirable, hence, causing a decrease in the output of goods. Yet, the average person would conclude that if a county's currency appreciates in value, why would it be having economical problems? For that, stay tuned for another article...we're talking about oil here.
The demand for gasoline is weak, which makes oil less appealing to investors. This further drives prices down, considering consumers of gasoline are finding other means of transportation, a phenomenon that is not all that phenomenal. It was only a matter of time for people to start getting sick of paying over $4.50 at the pump for a gallon of gas. Another reason why the price of oil has decreased is because of a stronger dollar in the last few weeks. Our currency is on the rise (yippie!), and this is causing investors to pull out of commodities (such as oil). Investors usually purchase commodities in order to hedge against inflation, and if the dollar is increasing in value, well, there isn't as much hedging necessary. You can find many articles relating to this by either going to 104Oil.com or 104Finance.com.
There are many other factors involved, including hurricane Gustav not having the impact investors had anticipated for it to have. Also, refineries are starting to slowly come back online after being shut down for various reasons. So then, is it safe to say that the oil bubble has finally burst? Or is it just leaking for now but getting ready to grow larger again? Some analysts believe that prices can spike again due to unforeseen geopolitical events (could they be any more vague?) or OPEC deciding to cut back production (basically them saying,"We need to drive demand up, so we should decrease supply and drive prices up because this year I want to make $2 Billion instead of only $1 Billion").
Whatever the reason is for oil prices decreasing, I really don't care. As long as gas prices are decreasing, which they have gone down in the past month from a national average of $4.11 to $3.67 according to AAA, and then I'm a happy camper. Might I add that just because prices have gone down about $0.45 doesn't mean I'm satisfied. It wasn't too long ago that I could fill up the gas tank of a gas guzzling Camaro for no more than $35.00. I'd like to see those times again, very soon, so I can drive more like Jeff Gordon rather than Ms. Daisy.
Related Tags: prices, invest, stocks, articles, china, gas prices, tank, barrel, oil, demand, commodities, drive, drilling, camaro, goldman sachs, analysts, jeff gordon, gallon, 104inc, 104oil, 104finance, opionion, pumping oil, gas guzzling, fill up, ms daisy
Our story at 104Inc is simple: We like to help others. Imagine a team that consists of family and friends who all have the same passion in life. Imagine a group of individuals who sacrifice so much everyday in-order to attain their goal and one day live their dream. Now, imagine the amount of effort, motivation and discipline it takes for ordinary people like us having a burning desire to accomplish something extraordinary. Here at http://www.104Inc.com, we have the opportunity to do all of that. We have, the aspiration, the zeal and the motivation to help others in areas where they are less fortunate, including our own family and friends.
It's Simple. It's 104Inc Approved.
Recent articles in this category:
- Sbi Best Sip Plans 2010
SBI Mutual funds have introduced many mutual schemes. Each scheme has different limitations. SBI SIP - Icici Sip Plans 2010 - Best Sip Plans
ICICI Prudential offers many schemes. These fund schemes have SIP. What is SIP? SIP's expansion is S - Determining Where To Invest Money
There are several kinds of investments, also you will find numerous factors to find out where to inv - Retirement Plans A Necessity Of Life
A person works whole life to give a decent upbringing to his children and families. But while improv - Stock Market Timing Signals
Follow the PlanThis would seem a statement of common sense, but the fact of stock market timing sign - A Selection Of Financial And Investment Strategy Guidelines For Turning A Profit
Yet, we don't often have the money to leave work right at this moment. We need a constant salary to - Find Out The Profitable Way To Invest In Small Cap Stocks
Everyone wants to find a penny stocks list or other investment strategies that can turn your literal - Portfolio #4 - Watergate
IntroductionThe problem is not that the world is running out of water. No, the problem is that drink - Dulton Group: Information Content Of Dividends
Dulton Group helps you to analyze the information content of dividends, an important factor affectin - Coping With Fear In A Markets
The real fact is that all traders, investors as well as stock market investors, who feel afraid, occ
Most viewed articles in this category:
- Investor Stress: A New Approach
George Muzea is both an investor and a stock market advisor. In any given month, he will be paid $10 - Real Estate Investment Financing
1. Location: Your real estate investment's location is arguably the most important component of your - Canadian Oil Sands - Who Are the Major Players
The Canadian oil sands represent one of the most lucrative investment opportunities to oil and gas i - Why Bulk Preconstruction?
Bulk preconstruction is the latest trend in secure, high profit real estate investing. By buying wit - Investing - It Is Not As Scary As You Think
Many people want to have more money - OK everyone does. However, most people don't know how to go a - How Do I Know Which Programs Are Scams?
Although it is virtually impossible to tell if a HYIP is a scam until the moment when they stop payi - Currency Trading Success - 6 Tips to Increase your Profits
If you want to increase your profit potential and achieve currency trading success then the simple t - The Business Cycle
Investors who want to beat the market should be followers of the business cycle. The business cycle - Pros and Cons of Real Estate
Like any other profession, there are good and bad things about what are available. Each of the thin - The Fixer Upper
Real estate investing has become almost a national pastime. Millions are made every year on the buyi