He also said: “…..the technical floor for the price Bitcoin Revolution 2 Review of oil will rise by $12 annually for the next 4 to 5 years as new fields become increasingly costly to exploit”.According to Mr al-Huseini the technical floor – the basic cost of producing oil excluding factors such as geopolitical risk and hedge fund speculation – is currently around $70 per barrel. This means that the price of oil could exceed $105 in 2010 and $125 by 2012.Mr al-Huseini said that Saudi Aramco plans to raise production capacity to 12 million barrels per day by 2012 represented “an achievable number”.
Saudi Aramco had announced oil investments of $55 billion between 2003 and 2011, but Mr al-Huseini cautioned that since some of the new production will come from entirely new fields “how the reservoirs will respond can be only determined once they start producing”.Because of the potential for oil to become an unsustainable fuel, technology has been shifting towards the development of other forms of energy, but this will be a slow and difficult change. It is extremely unlikely that the new technologies will have a great deal of influence in the shorter term.
Crude oil is not merely a physical commodity that largely fuels the world. It has also become a valuable financial asset – largely for the reasons stated above, and is sold in electronic exchanges by traders around the world, because of it’s desirability as an investment vehicle.So if you want to add another string to your trading bow, then perhaps trading oil with a strategy of buying on the dips could be well worth consideration.
A very popular trading strategy of late is to trade the news in forex. This refers to sitting in front of your computer waiting for a major news announcement to hit the wires such as the Non Farm Payroll, GDP, or other high impact releases. There are many problems with trading the news such as high spreads, sporadic markets, and interpreting the data properly.