Which direction oil?

Question

What happens to the price of oil from here, over the next 6-12 months?

Answer 1

Oil is heading upward. Here are the main factors that I believe will bring this about over the short term:

1. Technical. Oil has formed a bottom in the mid-upper 50s since last summer

2. Seasonal. This is the time of year when the price usually goes up.

3. Political. Things are heating up, so to speak, in the Middle East. The time of calm seems to be coming to an end.

4. Economic. OPEC has exhibited serious desire to keep the price of oil above 60. They cut production last month and will probably do so again this month.

Best of success.

Answer 2

It will continue to go up. There is evidence that the world has peaked in terms of oil production, meaning that short-term price drops will become smaller and more uncommon.

Even the Council on Foreign Relations just published a study stating that the US oil requirements will need to be met by other forms of energy in the near future and that conservation should become a higher priority. If those actions are not taken, then we'll have to rely more and more on foreign governments to supply our oil and these governments may be running out of oil for their own needs.

If the world has reached the peak of oil production, then the price of oil and its related products (basically everything we buy that's not produced or grown locally) will contine to become more and more prohibitive for consumers.

Expensive oil won't be the end of the world. But hopefully, as oil costs rise, we will develop alternatives and be able to sustain our current lifestyle without the dependancy on foreign oil.

ForeclosureFish
http://www.foreclosurefish.com/

Answer 3

I have a good percentage of my portfolio in oil, oil services and alternative energy. In the short-term, there are sufficient supplies of oil and natural gas, and I believe that energy stocks will be average performers. Long-term, we just don't have enough supply. The oil that is still out there is getting harder to find, and thus will require more oil services to get it out of the ground. I own drillers like NBR, and I also like th seismic equipment providers, MIND and BTJ, as oil companies seek to maximize the output of existing fields.

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Good luck.

Answer 4

it will probably go up but not as much as it has in the past 6-8 months