What’s next for oil?
Since 2002 MoneyWeek readers have made stunning gains from our oil recommendations as the price of crude soared to record highs.
Now the picture has changed. Demand for oil is falling across the world as global recession takes hold. As a result, the price of oil has come down sharply, to around $40 a barrel in – fact, we suggested shorting the oil price last summer.
But falling oil prices dont signal the end of the great oil investment story. You see, people still need oil, and the big oil majors are strong enough even at these oil price levels to sustain decent profits and dividend payouts. And in the long run, low oil prices sow the seeds of the next oil boom – if prices fall, companies cut back on spending to get more out of the ground and before you know it, you have a shortage again.
Thats potentially great news for you – as long as you invest in the right energy companies at the right time. To get the very latest news on oil – and discover the best opportunities to profit even as the price of crude falls - sign up for your FREE trial to MoneyWeek (including full access to all online content) here.
