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Market News

 May 26, 2009
An Easy Way To Profit from Surging Oil

 

If you're noticing gas prices moving north again, brace yourself.

They're going higher... much higher.

Crude oil already nailed a six-month high last week, thanks to a significant drop in oil inventories ahead of the summer driving season. And it's likely to spike even more. That is, if the Saudis are right.

Saudi Arabia's King Abdullah thinks $75-to-$80 oil is a fair price. And he says, "we are now seeing a quick recovery in the global economy, and see indications of increasing demand for this material (oil)."

Oil minister Ali al-Naimi says the price of oil will climb to $75 as demand picks up. "We'll get there eventually," he adds. "It will be achieved as demand rises and the fundamentals are better than they are now."

And yes, there are even fears of revisiting $100 oil and $3+ at the pump, which once aggravated the global economic slump.

Sure, the pullback to $33 was a relief while it lasted. But the days of cheap oil may be numbered, possibly giving way to another historic oil spike that could send us into a "double dip" recession.

But we'll worry about that if and when it happens.

Even economists think oil is headed higher. "As the economy picks up, spare capacity will start to erode, and the oil market could tighten up again in the first half of the decade," dean of world oil economists Daniel Yergin said in a U.S. congressional testimony.

Even James Hamilton of the University of California at San Diego added, "If demand in China and elsewhere returns to its previous rate of growth, it will not be too long before the same calculus that produced the oil-price spike of 2007-08 will be back to haunt us again."

And there's Ed Yardini who suggests, "oil traders are expecting that once the global economy recovers, supplies will tighten up quickly relative to demand."

Even legendary oilman T. Boone Pickens recently told Fox, "You're going to be back to $75 oil by the end of the year, and $200 per barrel within five years."

Worse, when global demand comes back --- as it will in China, India, and other emerging countries --- there's no telling how high oil could run. And it doesn't help that within OPEC as many as 35 new projects have been delayed.

"I've often described unsustainably low oil prices as carrying the seeds of future spikes and volatility," Ali al-Naimi said, according to TheStar.com. "If we place a low priority on preparing for the future, that lack of action can come back to haunt us through supply shortages and another round of high prices."

Truth is, we're headed much higher.

And there's a very easy, very cheap way to profit from the rise.

The Crude Oil Market: The Easiest-Paying Bottleneck of a Lifetime Most Americans' economic woes are only going to get worse.

That's because in the coming months as the economy turns around --- and yes, it'll turn around on its own in short order --- oil prices are about to face the fastest price spike in history.

We know the spike's just around the corner. But here's what you might not know. . .In fact, some of the richest, most savvy traders around don't know about this little gem of a play.

We've uncovered a rare investment that could pay you gains just as astonishing as any jackpot oil resource company out there --- but without the risk!

Here's how it works.

You see, this investment (which most investors know absolutely nothing about) doesn't even follow oil producers or risky exploration companies. It strictly follows the physical oil market.

And thanks to the unique nature of this investment, not only can you bask in the riches of the oil futures market --- you actually get paid double the gains that oil makes!

In other words, a 10% gain pays you 20%. . . a 20% gain pays you 40%. . . a 100% rise in oil prices pays you 200%.

So, if oil shoots 50% this year, which is our gross-underestimate, you'll double your money!

If oil shoots up to the $70 range, every $5,000 invested will suddenly turn into a $10,000 payday!

With oil trading in the $60 range, this unique opportunity just doesn't get any easier.

To safe and prosperous investing,

Ian L. Cooper