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.

Tuesday, June 16, 2009

Oil Rises Above $72 on Weaker Dollar, US Data


Reuters | 16 Jun 2009 | 10:40 AM ET
Oil rose $2 to above $72 a barrel on Tuesday as the dollar slid and U.S housing data showed a jump in new construction starts and permits.
"The housing data was quite good, but stock markets are not shooting away just yet," said trader Robert Montefusco at Sucden Financial. "The dollar is still the main crux of it."

The dollar fell broadly as higher European shares piqued appetite for currencies seen as higher risk, and lost more ground after the U.S. housing data.

A weaker dollar can strengthen commodity markets by improving the purchasing power of buyers using other currencies.

The Commerce Department said on Tuesday U.S. housing starts jumped 17.2 percent to a seasonally adjusted annual rate of 532,000 units, from April's revised 454,000 units, and new building permits rose 4 percent, the biggest advance since June last year.

Iran Priced In

Iran's top legislative body ruled out annulling a disputed presidential election that has prompted the biggest street demonstrations since the 1979 Islamic revolution, but said it was prepared for a partial recount.

The world's fifth-biggest oil exporter has seen three days of the largest and most violent anti-government protests in three decades, though no disruption to Iran's 2.1 million barrels-per-day exports have been felt.

"We've seen a downward spiral over the years in light of sanctions in Iran's ability to bring projects online...it's a slow trend that had pretty much been continuously priced in," said Samuel Ciszuk, analyst at IHS Global Insight in London.

Expectations of an economic recovery drove crude prices to a near eight-month high above $73 a barrel last week.

Traders will look out for weekly U.S. government inventory data on Wednesday, which is expected to show a 1.8-million barrel fall in crude oil stockpiles, a 600,000-barrel rise in gasoline stockpiles and 900,000-barrel rise in distillate stockpiles, based on a preliminary Reuters poll.

The American Petroleum Institute (API) will issue its report later in the day.

With oil rising almost $20 since the end of April, there were concerns that speculation in the market had pushed oil prices up too high, too fast.

OPEC Secretary-General Abdullah al-Badri said too quick a rise in oil prices could harm a global economic recovery, though a price of $80 a barrel would not stem growth.

The head of the International Monetary Fund, Dominique Strauss-Kahn, also sounded a cautious note, saying on Monday the worst of the global crisis was not yet over.
Posted by at

CNN news video