Best of the Week
Most Popular
1. 2019 From A Fourth Turning Perspective - James_Quinn
2.Beware the Young Stocks Bear Market! - Zeal_LLC
3.Safe Havens are Surging. What this Means for Stocks 2019 - Troy_Bombardia
4.Most Popular Financial Markets Analysis of 2018 - Trump and BrExit Chaos Dominate - Nadeem_Walayat
5.January 2019 Financial Markets Analysis and Forecasts - Nadeem_Walayat
6.Silver Price Trend Analysis 2019 - Nadeem_Walayat
7.Why 90% of Traders Lose - Nadeem_Walayat
8.What to do With Your Money in a Stocks Bear Market - Stephen_McBride
9.Stock Market What to Expect in the First 3~5 Months of 2019 - Chris_Vermeulen
10.China, Global Economy has Tipped over: The Surging Dollar and the Rallying Yen - FXCOT
Last 7 days
UKIP No Longer About BrExit, Becomes BNP 2.0, Muslim Hate Party - 21st Mar 19
A Message to the Gold Bulls: Relying on the CoT Gives You A False Sense of Security - 20th Mar 19
The Secret to Funding a Green New Deal - 20th Mar 19
Vietnam, Part I: Colonialism and National Liberation - 20th Mar 19
Will the Fed Cut its Interest Rate Forecast, Pushing Gold Higher? - 20th Mar 19
Dow Jones Stock Market Topping Pattern - 20th Mar 19
Gold Stocks Outperform Gold but Not Stocks - 20th Mar 19
Here’s What You’re Not Hearing About the US - China Trade War - 20th Mar 19
US Overdosing on Debt - 19th Mar 19
Looking at the Economic Winter Season Ahead - 19th Mar 19
Will the Stock Market Crash Like 1937? - 19th Mar 19
Stock Market VIX Volaility Analysis - 19th Mar 19
FREE Access to Stock and Finanacial Markets Trading Analysis Worth $1229! - 19th Mar 19
US Stock Markets Price Anomaly Setup Continues - 19th Mar 19
Gold Price Confirmation of the Warning - 18th Mar 19
Split Stock Market Warning - 18th Mar 19
Stock Market Trend Analysis 2019 - Video - 18th Mar 19
Best Precious Metals Investment and Trades for 2019 - 18th Mar 19
Hurdles for Gold Stocks - 18th Mar 19
Pento: Coming QE & Low Rates Will Be ‘Rocket Fuel for Gold’ - 18th Mar 19
"This is for Tommy Robinson" Shouts Knife Wielding White Supremacist Terrorist in London - 18th Mar 19
This Is How You Create the Biggest Credit Bubble in History - 17th Mar 19
Crude Oil Bulls - For Whom the Bell Tolls - 17th Mar 19
Gold Mining Stocks Fundamentals - 17th Mar 19
Why Buy a Land Rover - Range Rover vs Huge Tree Branch Falling on its Roof - 17th Mar 19
UKIP Urged to Change Name to BNP 2.0 So BrExit Party Can Fight a 2nd EU Referendum - 17th Mar 19
Tommy Robinson Looks Set to Become New UKIP Leader - 16th Mar 19
Gold Final Warning: Here Are the Stunning Implications of Plunging Gold Price - 16th Mar 19
Towards the End of a Stocks Bull Market, Short term Timing Becomes Difficult - 16th Mar 19
UKIP Brexit Facebook Groups Reveling in the New Zealand Terror Attacks Blaming Muslim Victims - 16th Mar 19
Gold – US Dollar vs US Dollar Index - 16th Mar 19
Islamophobic Hate Preachers Tommy Robinson and Katie Hopkins have Killed UKIP and Brexit - 16th Mar 19
Countdown to The Precious Metals Gold and Silver Breakout Rally - 15th Mar 19
Shale Oil Splutters: Brent on Track for $70 Target $100 in 2020 - 15th Mar 19
Setting up a Business Just Got Easier - 15th Mar 19
Stock Market Elliott Wave Analysis Trend Forercast - Video - 15th Mar 19
Gold Warning - Here Are the Stunning Implications of Plunging Gold Price - Part 1 - 15th Mar 19
UK Weather SHOCK - Trees Dropping Branches onto Cars in Stormy Winds - Sheffield - 15th Mar 19
Best Time to Trade Forex - 15th Mar 19
Why the Green New Deal Will Send Uranium Price Through the Roof - 14th Mar 19
S&P 500's New Medium-Term High, but Will Stock Market Uptrend Continue? - 14th Mar 19
US Conservatism - 14th Mar 19
Gold in the Age of High-speed Electronic Trading - 14th Mar 19
Britain's Demographic Time Bomb Has Gone Off! - 14th Mar 19
Why Walmart Will Crush Amazon - 14th Mar 19
2019 Economic Predictions - 14th Mar 19
Tax Avoidance Bills Sent to Thousands of Workers - 14th Mar 19

Market Oracle FREE Newsletter

Stock Market Trend Forecast March to September 2019

Crude Oil Headed Unimaginably Higher!

Commodities / Crude Oil Jul 26, 2010 - 08:06 AM GMT

By: Larry_Edelson

Commodities

Best Financial Markets Analysis ArticleA very well-known and internationally respected forecasting firm believes the price of oil is headed “unimaginably higher” in the next few years. To somewhere north of $300 a barrel. I couldn’t agree more.

What will drive the price of oil so much higher, when most of the western world is either in a deep recession, or worse, a depression?


We can talk about peak oil, or supply and demand forces, global warming, and so forth. But in reality, oil ultimately heading to $300 comes down to two very simple forces …

First, the inevitable demise of the U.S. dollar. I’ve written many times about this in the past, and I’ve been one of the only analysts in the world who has accurately predicted the now almost 11-year long bear market in the dollar.

Make no mistake about it: Despite an occasional rally in the dollar, the greenback is utterly destined to lose at least half its current purchasing power in the next two to three years, if not more.

And then even lose its status as the world’s reserve currency.

The reasons are varied, and inevitably bearish for the dollar. All you have to do is understand that the Federal Reserve stands ready, willing, and able to print unlimited amounts of paper money to pump up the U.S. and global economy, and that it will not hesitate to do so.

Federal Reserve Chairman Ben Bernanke confirmed it last week at his testimony on Capitol Hill when he stated emphatically that the central bank stood ready to act if the economy slows, and will take additional measures to support the economy.

That’s why, despite all the hullabaloo about the dollar’s recent rally in forex markets, the dollar has shed 7.33% since June 7, a whopping decline by any measure.

The dollar has shed 7.33% since June 7th, a testament to its long term bear market.

Second, the inevitable rise of China. At its current rate of economic growth, which is NOT going to slow substantially anytime soon, China’s economy will overtake the U.S. economy in less than 10 years.

And one of the ways China’s growth is showing up is, naturally, in energy demand.

In fact, according to the International Energy Agency (IEA), in 2009 China officially overtook the U.S. as the world’s top energy user, far faster than expected, and in spite of the global financial crisis.

China used up 2,252 million tons of oil equivalents last year, about 4% more than the U.S., which burned through 2,170 million tons, according to data from the IEA.

But energy consumption in China is still in the early stages of its growth.

In terms of total energy usage on a per capita basis, U.S. consumes 11.4 kW per person per day, while China consumes only 1.6 kW.

In other words, China consumes one-seventh of the amount of energy the U.S. consumes on a per capita basis — and China is already the world’s biggest consumer of energy.

As China’s economic growth continues and hundreds of millions more people are lifted out of poverty, it’s not too hard to see how the country’s need for all forms of energy is going to explode higher.

Or how that demand could easily push the price of oil “unimaginably higher” in the years ahead.

My view: Oil is one of the very best investments you can make in your portfolio for the long haul.

No matter what the economy or stock markets do shorter-term.

Energy shares explode more than 11% higher in just 12 days -- a testiment to their long term potential

That’s why, in just the last 12 days, energy shares have been exploding to the upside, with the typical oil and energy share gaining more than 11%.

And all of this is also why I expect a huge wave of mergers and acquisitions in the energy sector in the months and years ahead.

Huge, burgeoning Asian demand for energy and energy services, generating surging revenues … plus the sliding value of the U.S. dollar will mean loads of companies will also want to put their money to work in the energy sector.

Which is why you should consider investments for the long haul in my …

Short List of Prime Investment Candidates in the Oil and Energy Industry

These are oil and energy companies I believe every investor should own a piece of for the long haul. They represent the top players in their particular niches in the industry … or have huge undervalued oil and gas reserves … and could eventually be prime takeover candidates by larger companies.

table Headed Unimaginably Higher!

They are certainly not the only ones. But they are companies I would consider buying now and putting away for a few years.

Each and every one of them could easily double … triple … or even quadruple in the next couple of years. I suggest you buy them and sock them away.

Not at the expense of any of your gold investments, mind you.

Lastly, stay out of the broad stock markets, except for the above investments and any others recommended in my Real Wealth Report.

Short term, yes, the Dow could rally back to the 11,000 level. But the risk is to the downside, down to Dow 9,000, and probably lower, to Dow 8,700.

You can see the cycles forecast in this updated cycle chart that my colleague, Richard Mogey at the Foundation for the Study of Cycles, and I just put together. While we do expect a rally into late August/ early September — thereafter we should see one doozy of a decline, a nasty sell off that will catch most investors way off guard.

S&P 500

The way I suggest to play it: With an inverse ETF on the broad markets, such as the ProShares Short S&P 500, symbol SH, or the ProShares Short Dow 30, symbol DOG.

But don’t buy them yet. Consider buying them as soon as you see the Dow hit 10,800.

Finally, don’t listen to all those pundits out there who are telling you to get out of Asian, and especially Chinese-based investments. They’ve been wrong time after time about Asia and China, and they are going to be dead wrong again.

Instead, Asia and China, in addition to gold and oil, represent your keys to wealth in the months and years ahead. So be sure to also follow our Asian expert, and my good friend, Tony Sagami’s column, published every Wednesday.

Best wishes, as always, for your health and wealth!

Larry

P.S. For just $99 a year you can get ALL of my timing signals, recommendations, risk reduction strategies, insights into the markets, including how I expose how the powers-that-be that are destroying our dollar — and more. It’s a freaking bargain. Join now by clicking here.

This investment news is brought to you by Uncommon Wisdom. Uncommon Wisdom is a free daily investment newsletter from Weiss Research analysts offering the latest investing news and financial insights for the stock market, precious metals, natural resources, Asian and South American markets. From time to time, the authors of Uncommon Wisdom also cover other topics they feel can contribute to making you healthy, wealthy and wise. To view archives or subscribe, visit http://www.uncommonwisdomdaily.com.


© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules