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.

Friday, May 15, 2009

Oil steadies below $59/bbl, eyes equities, dollar


15 May 2009, 0935 hrs IST, REUTERS
SINGAPORE: Oil prices paused below $59 on Friday as investors weighed stronger equities
, a steady dollar and a gloomy demand forecast by the
International Energy Agency.

Crude prices were just a notch higher from last week's close, after moving in lockstep with the stock market and rising against a bearish report by the IEA a day earlier.

US crude for June delivery inched up 9 cents to $58.71 a barrel at 0246 GMT, while London Brent for July delivery rose 12 cents to $58.71 in its first session of trade as the new front-month contract.

"Equities and currency are most important. The $60 price level is also very important," Tetsu Emori, a fund manager at Tokyo-based Astmax Co Ltd, said.

US oil prices breached $60 a barrel during intraday trading on Tuesday but settled below $59 after the US Department of Energy slashed its 2009 oil demand forecast.

Oil prices have been tracking equities markets in recent months as traders look to stocks for signs of an economic recovery that could lift ailing world fuel demand.

Tokyo's Nikkei average was up 1.66 percent by the midday trading break after Wall Street closed firmer on Thursday, while the dollar was steady against a basket of major currencies.

Paris-based IEA, an adviser to 28 industrialized nations on energy policy, forecast a day earlier that world oil demand this year would fall the most since 1981.

IEA said the rise in oil prices to a six-month high above $60 this week was due to sentiment rather than fundamentals.

The US Energy Information Administration and OPEC also cut their forecasts for energy demand in recent days.

The Organization of the Petroleum Exporting Countries (OPEC), which has announced 4.2 million bpd of production cuts since September in a bid to tighten the market, also pumped more oil last month than in March, the IEA said.

OPEC members' compliance with production quotas fell to 78 percent in April from 83 percent a month earlier.

Traders will take cues from more economic indicators out of the United States due later in the day, as well as renewed unrest in Nigeria, Africa's biggest oil producer.

Nigerian militants have hijacked two cargo ships in the Niger Delta and given oil companies until Saturday to evacuate staff, warning they would attack helicopters and planes after the deadline, after heavy clashes with the military.

Economic data expected later include US April consumer price index, the Reuters/University of Michigan survey of May consumer sentiment, the US ECRI weekly index of economic activity, as well as euro zone flash first-quarter GDP.
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