This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Oil In 2013: Boom Or Bust?

Kierman added that crude supply issues will be a main focus moving forward, noting that Brent crude's resilience is the result of low spare capacity among OPEC nations and a risk premium caused by the potential for Middle East conflict, particularly between Israel and Iran.

A difficult year to predict

With such varied forecasts, it seems that the next year will be positive for energy consumers, but will have less upside for energy investors — especially those invested in the oil sector.

Being able to accurately forecast crude prices is challenging at the best of times — especially considering that making forecasts is so closely linked with tracking geopolitical events. The ongoing instability being experienced in the Middle East is likely to have speculators bidding up the price of crude futures, while at the same time oil prices are unlikely to see much upside if higher global production amid sluggish economic growth continues.

Many feel that on average, prices are likely to fall; however, as has been shown in the past, it only takes a single incident in an oil-rich region to completely disrupt all logical assumptions about futures.

If crude remains in its current range, investment opportunities will still exist. Companies that assist with production are likely to benefit from increased drilling while remaining relatively protected from price fluctuations, and refiners are likely to gain as infrastructure in the US develops on the back of plans to build towards energy independence.

 

Securities Disclosure: I, Adam Currie, hold no direct investment interest in any company mentioned in this article.

Oil in 2013: Boom or Bust? from Oil Investing News

3 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG

Markets

Chart of I:DJI
DOW 16,102.38 -272.38 -1.66%
S&P 500 1,921.22 -29.91 -1.53%
NASDAQ 4,683.9190 -49.5780 -1.05%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs