Insider Secrets

Insider Secrets

Learn how the PROs are making money from the oil and energy market.

Loading, please wait

The Correct Price for Crude Oil

By
Posted on Mon, 07 April 2014 20:37 | 0

With the flattish nature of its action over the past several months, oil seems to have reached a tipping point on price.  It’s almost as if the charts are saying that oil either must break up or break down, if long-term trendlines are going to be respected.

Barrons took the opportunity to plump for a downside break last weekend, a prediction I have vigorously argued against in both print media and on-air.  But one follower of mine made a very astute observation, pointing out to me that futures markets for crude oil ten years out are ‘predicting’ oil prices almost $20 lower.  The disconnect between forwards trading as ‘predictors’ of future price is a subject I spent a long time explaining in my book, “Oil’s Endless Bid”, but worthy of explaining again – And even pointing out one of the great (at least theoretical) investment opportunities which anyone in the world could make.

A very brief overview of the history of financial oil is necessary here.  Think back into the days before 1983 when there were no financial instruments on oil.  Prices were arrived at using physical trade alone – you delivered crude and cash would change hands.  The price that was agreed upon was arrived at by only two kinds of players – those that produced oil and those that used it.

But the market then was extremely biased towards the takers of crude.  While oil companies had practically…

To read the rest of this article Start a FREE subscription to our premium publication

Oil & Energy Insider - 30 day Free trial

30 day Free trial
A FREE Subscription Includes:
  • Investment advice normally reserved for hedge fund clients.
  • Market & sector research not available anywhere else.
  • Strategic advice from corporate & military intelligence analysts.
  • 9 Weekly Investment / intelligence reports.
  • Full access to all previous reports.
  • 30 days free trial.
Get FREE access to our research for 30 days

An essential resource for all investors in the energy sector whether you're a trader, fund manager or individual investor - this inside look at the energy markets is unlike any other report or service currently available.

Special Reports

8 Mega Trends

8 Mega Trends

By Oil & Energy Insider Analysts

8 OIL & GAS INDUSTRY MEGA-TRENDS AND HOW TO PROFIT FROM THEM
Here's what our 400 global energy assets are telling us to be prepared for right now...

LNG Technology

LNG Technology

By Oil & Energy Insider Analysts

THE "FLOATING REFINERY" STOCK THAT COULD FUND YOUR RETIREMENT
This company's incredible tanker technology could eliminate many of the world's offshore pipelines...

Subsea Production

Subsea Production

By Oil & Energy Insider Analysts

THE END OF OFFSHORE DRILLING?
This disruptive market will grow 84% to 270% over the next five years: Discover the 6 equipment suppliers set to profit.

Related Articles


Martin tiller