| Product Code | MOW00004 |
|---|---|
| Publication Date | October 2008 |
| Publisher | MoneyWeek |
| Product Type | Report |
| Pages | 9 |
This report finds that up until recently, oil has been about the one market in the world that investors could rely on to go up. But the price of 'black gold', as it's called, is tumbling. After running up to record highs of $147 a barrel in July, the price of crude has dropped sharply. Investors whove watched its seemingly unstoppable surge are wondering if this is the end of the bull run.
Authors of the report say that oil could stay as low as $60-$70 a barrel, but set out ways investors can continue to make money from oil - even when prices are falling.
They say that even if oil remains at $70 a barrel or so, importers in the West and Asia would still be forking out far more for energy than a couple of years ago. There would still be a large transfer of wealth from these countries to producers in the Middle East, Latin America, Russia and Africa, not to mention those companies involved in the business.
That means that for the longer term, oil remains a great industry to be in. As emerging Asia fully industrialises, the amount of extra oil that will be needed to fuel its shift towards developed world standards of living, is huge.
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