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Is Oil a Good Investment ?

BY: Damien ROBERT | Category: Finance | Submitted: 2011-09-10 04:16:51
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Article Summary: "Is oil a really good investment, to help you to understand the advantages of the oil in investment, to invest - gives you the answers to your questions..."

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When the world stock markets seem to collapse under the pressure of the international economic crisis, there are values which continue to attract the investors by thousands. Among these big winners in the crisis, the oil presents numerous advantages and then shows to be an excellent investment. The site invest - explains you why invest in the oil can be an excellent means to make a profit in this period when the good investments make rare.

Before explaining you why the oil price should appreciate during months to come, it is important to understand how is quoted the barrel of crude oil on stock markets. First of all, the oil price does not really depend on the financial or economic health of the producing countries or on exporter countries. Indeed, the value of the oil is essentially determined by the principle of the offer and the request. What means that more the demand is strong and less the production is important, more the price of the barrel will appreciate. But, the oil is subjected to certain limits of production. Therefore, more the distance between the supply and demand is important; more the crude oil price will increase. It is thus essential to have a good visibility on these two factors.

According to the numerous specialists of stock markets, the oil, which has already begun an upward trend, should continue to appreciate during months to come. On the background of international economic crisis, the oil indeed tends to become a safe investment for the investors who do not rely any more on the classic stock markets too much in the grip of the fall pronounced by the various products and by their value. Indeed, the oil not being a function of the economic situation of a country, its value is not influenced by the crisis. Besides, the fact that the currencies allow to invest in the oil depreciate, it becomes really interesting to invest in the oil at a lower cost that if they presented strong values.

Finally, the economic growth of certain Asian countries as China, contributes to increase the request of oil emanating in particular from needs of the industry. Indeed, the analysts of the International Energy Agency recently published an explaining report showing that the requests of oil should increase appreciably in 2011. In front of this new request, the producing countries see each other limited due to their low capacity to increase their productivity. The distance should thus push up and contribute to increase the oil prices on markets.

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Oil is good but we have to remember that all translations on forex market are risky. forexwestcom Bernard Laita - Author 2012-04-27 10:55:43 1242

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