Oil commodity?
- Thread starter Tony71
- Start date
My grandfather has invested in oil commodities and the kind of plans they have going have a history of of not gaining anything LESS that 5%. My father actually sells them and that's how he invested. Basically he earns around 10% if it's around $100 a barrel and around 15% if it's $140 or such. So it tends to be a pretty good investment since we won't see the price of the barrel going lower than $60 or even $70 anytime soon.
This is why I see it hitting $200 by mid next year. We have the middle east revolution going on, Tunsia, Eygpt, Bahrain, and now Syria which is making Iran nervous.
I think after Eygpy dies down and Ghadafi is either killed or captured then all attention will be on Syria and I see Assad may either step down but I'm sure he will not give up power that easily so he will go out like Ghadafi. After Syria??? It is Iran.
The people in Iran are fed up with the corrupt government and there are major conflicts within Iranian government, so Iran is like a timebomb ready to explode from within.
Now if there is a war with Iran and Iran closes off the strait of harmuz then you can bet oil hitting much more than $200. If they manage to close it off for a week or more then oil price can hit $300 maybe more.
Thats just my 2 cents ;-)
I think after Eygpy dies down and Ghadafi is either killed or captured then all attention will be on Syria and I see Assad may either step down but I'm sure he will not give up power that easily so he will go out like Ghadafi. After Syria??? It is Iran.
The people in Iran are fed up with the corrupt government and there are major conflicts within Iranian government, so Iran is like a timebomb ready to explode from within.
Now if there is a war with Iran and Iran closes off the strait of harmuz then you can bet oil hitting much more than $200. If they manage to close it off for a week or more then oil price can hit $300 maybe more.
Thats just my 2 cents ;-)
Here is why the price could go down:
There has been no disruptions to the supply in the middle east, just the RISK/THREAT of supply disruptions. Meaning this whole buildup in price is mostly do to a risk that hasn't happened and possibly won't happen.
People start to freak out at $4/gallon gas, which it is almost at in most places now. This changes their driving habits and they buy/trade in their cars for more fuel efficient ones, this drives down demand.
If the average price goes up to $5/gallon people will go crazy and demand that the president do something. He will probably tap the oil reserve, which will increase supply, or allow for more drilling.
Because people are so sensitive to the upside, there is huge resistance to oil prices continuing to go up.
LOTS of speculators are holding oil. So if the price starts to drop, it could drop extremely fast.
After July 4 people drive less, demand will go down.
More electric cars, drives down demand.
If you buy now, you are buying oil at a relative very high price.
At this point I would be more interested in selling then buying, but that is just me.
There has been no disruptions to the supply in the middle east, just the RISK/THREAT of supply disruptions. Meaning this whole buildup in price is mostly do to a risk that hasn't happened and possibly won't happen.
People start to freak out at $4/gallon gas, which it is almost at in most places now. This changes their driving habits and they buy/trade in their cars for more fuel efficient ones, this drives down demand.
If the average price goes up to $5/gallon people will go crazy and demand that the president do something. He will probably tap the oil reserve, which will increase supply, or allow for more drilling.
Because people are so sensitive to the upside, there is huge resistance to oil prices continuing to go up.
LOTS of speculators are holding oil. So if the price starts to drop, it could drop extremely fast.
After July 4 people drive less, demand will go down.
More electric cars, drives down demand.
If you buy now, you are buying oil at a relative very high price.
At this point I would be more interested in selling then buying, but that is just me.
I read on a few places that for every cent gas goes up, Americans drive on average 10,000,000-15,000,000 miles less per day. So yes, a massive decline could happen.
Oil is going to go back down.
Oil went up for Obama to get elected (hurt incumbent).
Oil will go down for Obama to get re-elected.
They are simply giving us extra pain right now in preparation for the great Obama Relief that is on the way.
Oil went up for Obama to get elected (hurt incumbent).
Oil will go down for Obama to get re-elected.
They are simply giving us extra pain right now in preparation for the great Obama Relief that is on the way.
Go crawl back under your rock.
FYI, there was no incumbent when Obama was elected. Do you even know the definition of incumbent?
Incumbent | Define Incumbent at Dictionary.com
Sorry.... Incumbent Party.
Check your history - oil will go down. Maybe not for Obama's campaign. But it will go down again. As price increases more suppliers jump in which creates an oversupply. It is the classic boom/bust cycle. You can say there is an increased demand from developing nations but the chances that it will outstrip the supply is not likely. In fact, if they would allow production (drill permits etc) then the supply would be even greater. The current oil price is not based in fundamentals of supply/demand .