Consider the following…

Oil is one of the most important natural resources known to mankind. For most societies in the world, oil is the principal natural resource that fuels their economies. Then why, in this great age of communication and technology, do we need to be concerned about a natural resource like oil? Simple. Nearly 98% of everything you have or do is in some way related to crude oil. Heat for your home, gas for your car, 2 liter plastic bottles for pop, and petroleum jelly are just a few examples of products created from crude oil. The United States has the greatest standard of living in the world, as well as the largest economy. Why? Because we have always tried to maintain control over the supply, as well as price, of oil. Over the last 10 years, the U.S. economy has undergone the largest economic expansion in history and cheap oil has fueled this unprecedented growth. Unlike the 1970s, when the U.S. was held at bay by OPEC withholding oil production for political reasons, the growth of the oil industry during the 1990s, and beyond, will be more likely be determined by the laws of supply and demand. As democracy and capitalism are spreading around the world, global oil consumption is at record levels. Throughout Latin America, Russia, India and Asia, economic growth is accelerating at a remarkable pace; much faster than anything we have seen in the U.S. Recently, Forbes described the development now exploding across Asia. --Forbes

As any astute investor knows, it is extremely difficult during these times to find financial opportunities which provide both security and a solid return on your hard-earned money, Conventional investment in CD’s, savings accounts, money markets, mutual funds, stocks and bonds, etc. are currently bringing less than satisfactory returns. The Wall Street Journal, Forbes, Fortune and other well know financial publications have shown the recent volatility in the financial markets. T he future prospect for profits are even worse when inflation is calculated. Now is the time to diversify your portfolio in hard dollar investments in oil and gas drilling programs. The key to better return is to diversify your portfolio in energy related investments. Take advantage of opportunities which have excellent risk-to-reward ratios while still maintaining you personal and or family financial foundation. Prudent investment in sound, well researched oil and gas programs, can offer a significant monthly cash flow from the sale of oil and gas well production and very significant tax advantages not found with normal investments. With the additional benefits of higher prices, these benefits far exceed gains and tax advantages on energy related stocks.

Oil Clock


Find out how to invest in energy stocks at EnergyAndCapital.com.

Wednesday, May 13, 2009

Oil rises towards $60 on US stockdraw, eyes recovery


13 May 2009, 0937 hrs IST, REUTERS
SINGAPORE: Oil extended gains towards $60 a barrel on Wednesday, after hitting a six-month high the previous day, as US weekly inventory data
showed a drawdown versus forecasts for a stock build, boosting hopes for demand recovery in the world's top energy user.

Oil was also buoyed by a weaker US dollar, which slid to a four-month low against a basket of currencies as growing optimism about the global economy boosted investors' risk appetite and curbed demand for the greenback as a safe haven. The market will await the US Energy Information Administration's
(EIA) weekly report at 1430 GMT to confirm the surprise fall in crude stocks.

April retail sales data and March business inventory figures due later in the day would provide more clues on the health of the US economy. By 0240 GMT, US crude for June delivery was up 95 cents at $59.80 a barrel. It settled 35 cents higher at $58.85 a barrel on Tuesday, off an earlier peak of $60.08, its highest level since November. London Brent crude rose $1.10 to $59.04.

"Sentiment has been pretty bullish for the better part of the last month or two, and we believe crude will find $60 as the floor and trend higher in the next few weeks," said Peter McGuire, managing director of Commodity Warrants Australia. "Also, we're moving into the period of higher demand in the northern hemisphere and hurricane season, which could affect supplies from the US Gulf, so we expect a range of $61-$62 pretty soon."

The American Petroleum Institute (API) said on Tuesday that US crude inventories fell 3.1 million barrels to 370.7 million barrels last week, against a forecast of a 1.4 million barrel increase in a Reuters poll of analysts. Possibly hinting that consumer confidence is returning, US April retail sales, out at 1230 GMT, are expected to remain unchanged from from a 1.2 per cent decline in March, a Reuters poll of economists showed.

Excluding automobiles, sales are seen up 0.2 per cent compared with a 0.9 per cent slide the prior month. Oil has plunged from a record high above $147 a barrel hit last July, but a rally in stock markets over the last few months has helped lift crude up almost 80 per cent from a January low of $32.70 a barrel.

The Organization of Petroleum Exporting Countries (OPEC) is unlikely to cut its oil output target at its meeting later this month, a source close to the group's president and a second OPEC delegate said on Tuesday. The producer cartel is also due to release its monthly report later at 1000 GMT.
Posted by at

CNN news video