Dear Fellow Investor,
Increasing demand in emerging countries for food, metals and energy has fueled a worldwide commodities boom. As countries like China quickly develop their cities, build roads and improve the quality of living, their need for raw materials has sharply increased. Many of these countries are now some of the world's biggest consumers of steel, cement, copper, and gold.
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But one commodity above all others is definitely feeling the effects of the unprecedented crunch, and that's oil. It has been difficult for oil production to keep pace with the seemingly never-ending demand for it, and as a result, world supplies have been tightened. This supply/demand crunch has increased pricing pressure and now, oil is selling at astounding prices.
Just look at the news this week -- the price of oil surged to a record high near $120 per barrel! I am sure that none of this is news to you, as the price of gasoline has jumped to national average of around $3.50. Here in Los Angeles gas is approaching $4 a gallon. Despite these record-breaking highs, I think that the current cost of oil is only a glimpse into the even-higher oil prices that are to come.
How high can prices go? Your guess is as good as mine, but I'm betting much higher. It only took three to four months this year for oil per barrel to jump $28. While before, it took almost three years for oil to jump from $50 to $100 per barrel. So don't be surprised if we see oil at $150 per barrel by the end of the year.
While the Fed printing money right and left is one of the main causes of heightened oil prices, the reason other reason is increased demand from emerging countries like China, India and Russia. The International Energy Agency expects these countries to burn 20.7 million barrels of oil per day in 2008. That's a 4.4% increase from last year.
Although demand is strong, oil supplies aren't growing. And the Organization of the Petroleum Exporting Countries (OPEC) isn't coming to the rescue. It has stated that it will not raise production output because it thinks that there is no need for it.
Squeezing oil supplies even more is the interruption in production that some oil companies around the world are experiencing right now -- pipelines in Nigeria were recently attacked, and there are threats of a strike at a Scottish refinery.
Considering all of these sobering facts, it's easy to see that oil prices will probably stay elevated for some time. But while this may put a damper on your summer vacation plans, there are ways to profit from the soaring gas prices. Two words: Offshore Drilling. With the majority of easy-to-find oil fields already discovered, the only place for large reserves of viable crude oil is underwater.
My China Strategy subscribers are already profiting from China's leading offshore driller -- we're sitting on a 190% gain. Join China Strategy today to find out how you can profit from the increasing cash in on the rising profit from the increasing demand for oil.
Go Back to the Source
With the surge in commodities, most oil refineries and processors are struggling right now with higher raw material costs. That's why I recommend taking another step back in the oil supply chain. I recommend investing in the companies that work with oil's raw form -- the explorers and producers of crude oil.
Oil exploration and production companies are making profits hand over fist as the demand for crude oil has increased. Considering that oil may jump to over $150 a barrel within the next 12 months, their ultimate fortunes will be immense. This is an excellent investment opportunity, and why I've been recommending an offshore drilling company to my China Strategy subscribers.
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More Ways to Profit at Asia Edge
Want more ways to profit from sky-high oil prices? In my Asia Edge service, I've recently recommended one oil company from outside of China that is raking in the profits. This company is a leader in Brazil's oil industry, and it has already given my Asia Edge subscribers a 10% profit in just two weeks. The profit potential in the oil industry right now is just too good to pass up, so I actually just recommended a second oil company to our Asia Edge portfolio on Wednesday. This company is quickly expanding its offshore drilling fleet into the waters of the Asia-Pacific region -- one of the most sought-after regions in the world. The company has excellent growth potential and more profits on the horizon. Don't let this opportunity pass you by! Join Asia Edge today. |
This company is based in China and actually has a monopoly in offshore drilling, exploration and production in the country. It has oil and gas properties all around the world, and is constantly looking to increase production to keep up with China's growing demand. So far, China Strategy subscribers have enjoyed a 190% gain in the company, and as oil prices continue to surge throughout the year, I expect this to be just a drop in the bucket of the profits we'll see. Join China Strategy today for my specific buy instructions for this oil play!
P.S. In addition to my current oil recommendation, I also have two more oil companies that I am watching. Both companies focus on the exploration and production of oil, and I think that they will also prove to be quite profitable in the coming months. I will keep an eye on these companies and let you know the best time to start investing in them. To make sure that you don't miss the next 100%+ in profits, join China Strategy today!
