Bloomberg is reporting that two oil "experts" are expecting $100 oil. One expert said $95 crude is "likely this year" and the other said we are "only a headline of significance" away from $100 oil. Interestingly, the article notes that a record number of contracts are outstanding with a bet on $100+ crude oil.
The situation in crude oil predictions makes is rather interesting but I wouldn't take these estimates as being very precise considering the fact that crude oil fundamentals merely fuel speculative buys or sells and the product doesn't really have a true value, because it doesn't generate cash flows.
That being said, I certainly wouldn't bet against crude oil or oil companies. The American people remain reliant on the precious commodity and I don't expect that to change anytime soon, even if alternative energy sources become popular.
Investors who believe that oil prices are going to rally have several options. In this situation I'd much rather purchase individual companies than the commodity simply because oil companies remain very cheap, even on oil prices as low at $50 per barrel. But investors do also have ETF choices such as iPath Crude Oil Total Return Index (NYSE: OIL) or United States Oil Fund (AMEX: USO) for the commodity itself, iShares Oil&Gas Exploration and Production (NYSE: IEO) for Oil&Gas companies, HOLDRS Oil Services Trust (AMEX: OIH) for services companies, or PowerShares Wilder Clean Energy Portfolio (AMEX: PBW) for investors who believe the United States is going to being making significant policy changes to strongly encourage alternative energy choices.
(Note: For ETF information I highly recommend ETF Connect)
While I can't tell you where oil is going or how it's going to move in the next few months, I think it's a pretty safe bet that the demand for crude oil is going to remain and American policymakers are going to be forced to start combating this somehow.
Last updated: February 12, 2012: 10:12 AM
Hot Stocks
DailyFinance Headlines
- 4 Money-Etiquette Questions Answered
- Walmart's New Health Food Push: Is It Too Hard to Swallow?
- Newlyweds, Don't Let the IRS Spoil Your Honeymoon
- Bonds Are a 'Safe' Investment: A Big Lie Gets Even Bigger
- Why Groupon Will Never Be Great Again
Benzinga Headlines
- Michigan Consumer Sentiment Index Drops
- Don't Bank on Barclays
- GSV Capital Punished for Expanding Facebook Investment
- Chesapeake Gently Lets Go of Gas
- How to Profit off Addicts
TheFlyOnTheWall.com Headlines
BioHealth Investor Headlines
- Can Human Genome Really Double Its Stock Price? (HGSI)
- Alimera Implosion Analysis, What Is Next (ALIM, PSDV)
- Implosion Analysis For Targacept… What Lies Ahead? (TRGT, AZN)
- Rare Analyst Calls With Huge Upside in Vical and VIVUS (VICL, VVUS, BMY)
- Top Biotechs With Upside Ahead of Earnings (GILD, AMLN, ARIA, INCY, JAZZ, DNDN, HGSI, ILMN, AMGN, CELG, BIIB, BMRN, LIFE, REGN, AMLN, CBST, ONXX, THRX, VPHM)
WalletPop Headlines
- 4 Money-Etiquette Questions Answered
- Walmart's New Health Food Push: Is It Too Hard to Swallow?
- Newlyweds, Don't Let the IRS Spoil Your Honeymoon
- Bonds Are a 'Safe' Investment: A Big Lie Gets Even Bigger
- Why Groupon Will Never Be Great Again
My Portfolios
Track your stocks here!
Find out why more people track their portfolios on AOL Money & Finance then anywhere else.
BloggingStocks Partners
More from AOL Money & Finance
- Business News
- Stock Screener
- Stock Quotes
- Stock Charts
- Banking
- Identity Theft
- DJIA
- Debt Management
- Loans
- Auto Loan
- Mortgages
- Taxes
- Retirement
- Insurance
- Small Business
- Earnings
- Tech News
- Tax Forms
- Tax Deductions
- Tax Credit
- Tax Audit
- Tax Advice
- Stock Ticker
- Stock Brokers
- Resume Builder
- Pig Flu
- Online Tax Filing
- Madoff
- Investing For Retirement
- Income Tax
- Historical Stock Prices
- GOOG
- ETF Investing
- Deals
- DailyFinance
- Crude Oil Prices
- Credit Score Calculator
- Common Tax Filing Mistakes
- AMT
BioHealth Investor Headlines
- Can Human Genome Really Double Its Stock Price? (HGSI)
- Alimera Implosion Analysis, What Is Next (ALIM, PSDV)
- Implosion Analysis For Targacept… What Lies Ahead? (TRGT, AZN)
- Rare Analyst Calls With Huge Upside in Vical and VIVUS (VICL, VVUS, BMY)
- Top Biotechs With Upside Ahead of Earnings (GILD, AMLN, ARIA, INCY, JAZZ, DNDN, HGSI, ILMN, AMGN, CELG, BIIB, BMRN, LIFE, REGN, AMLN, CBST, ONXX, THRX, VPHM)
Tax Reform in This Election Year: It's Not Likely
Which Credit Card Rewards Does the IRS Care About?


Reader Comments (Page 1 of 1)
7-23-2007 @ 8:27AM
Michael Schneider said...
A synopsis of Bill Barnhardt's comments on the Goldman Sachs energy report last week-- which moved oil markets bit and which predicted $95 oil near term and gave reasons why risks of an oil price spike are increasing--is available free along with many oil items in Oil Alerts (left side, light-blue label) at http://www.Barrelomoney.com. There is also an item on T Boone's recent comments on oil (he sees $80 this year) but the Barnhardt item seems particularly useful for those trying to discern the near-term possibilities for oil.
7-27-2007 @ 1:13AM
Rob McMillin said...
I tried going to barrelomoney.com. What a piece of garbage website. Badly organized with no links going outside.