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Oil Surges Higher: Still Good Investment

| Oct 18, 2009 | Comments 6

Expect Crude Oil to continue to rally all the way to the end of 2009. Oil is now trading at around $78 a barrel after the recent surge. So why to I the oil rally willearth-drowing-in-oil continue?

5 Reasons Oil Will Succeed

1. Oil is undervalued, futures continue to rise proving prosperous times

2. OPEC expects Global Oil Consumption to increase 500,000 barrels a day in 2010

3. Per day Oil Consumption to spring back to 940,000 barrels a day and maybe even as high as 1.4 million barrels a day if demand rebounds

4. Analysts predict higher oil prices will be fueled by a stronger economy and higher global demand in BRIC countries

5. Energy forecasters have regularly made assumptions throughout the past year as the fast-changing economic landscape altered consumption patterns and will send crude oil price high above $145 a barrel

Why I like oil as a long-term investment?

I am bullish about the prospective of the industry leading into 2010, as U.S. consumption is expected to rebound somewhat and consumption in emerging markets is supposed to rebound substantially. While most U.S. based Oil Companies expect profit drops of around 65% in 2009, I see it rebounding over 65% in 2010 and higher based upon higher projected pricing due to improved long-term economic outlook and new project start ups that have helped boost the upstream in the gas and oil volume. The main determinant to the oil recovery is the pace of how our economy continues to rebound. The stronger our economy becomes, the stronger the oil markets become. One large effect by the stagnate economy is the how the global credit crunch is making it hard for many companies to expand. I feel that our economy is slowly stabilizing and as a result the oil boom will start to take off in 2010.

What Oil Stocks to Buy?

1. Chevron (CVX)

2.ConocoPhillips (COP)

3. Exxon Mobile (XOM)

4. Noble Corporation (NE)

5. Total SA (TOT)

6. Transocean (RIG)

7. PetroChina (PTR)

8. Petrobras (PBR)

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Filed Under: Commodities | Emerging Markets | Energy • Featured

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  • http://www.independentinvestor.co.uk/cfd/ CFD trading

    As people keep talking up the recovery oil will surely be the main benefactor as lots of speculative money is poured into it.
    Taking into account that lots of traders pull the money from bonds and other secure assets they’ll be more money put in oil.

    • http://stocksonwallstreet.net James

      Good points added, oil is a hot commodity so I too expect it to be traded a lot in the upcoming months.

  • http://RandomChatter.org Alex

    Over the years we have become a more energy conscious nation.We find more efficient ways to use energy.Natural Gas powered buses are being used for example in the city.They have proven to be sufficient.
    Will we see other products using this energy ?
    Maybe…depending on the product(s) itself.

    • http://stocksonwallstreet.net James

      Yes use up the fossil fuels until they die out.

  • http://RandomChatter.org Alex

    The colder weather is here.There are parts of the U.S getting pounded with snow @ this time.The usage of gas and oil are being used early.
    Now is the time to invest as a consumer.
    The investors are watching to see what we(consumers) will do.

    • http://stocksonwallstreet.net James

      Energy seems to be a pretty strong investment whether its oil or natural gas. Adding to this, oil is so deeply entrenched within our economy their is no way it won’t go up.