Days of Cheap Oil Are Over, According to Investment Contrarians Financial Expert

In a recent Investment Contrarians article, financial expert and editor George Leong reports that the November West Texas Intermediate (WTI) futures contract is up 16.7% from its 12-month low, having rallied since June’s bear market. Leong notes that the current stock chart for WTI is showing a bullish flag formation setting up, which means that higher oil prices—to over $115.00 in the best-case scenario—could be coming. Based on Leong’s technical analysis, cheap oil is now a thing of the past.

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Days of Cheap Oil Are Over, According to Investment Contrarians Financial Expert

Days of Cheap Oil Are Over, According to Investment Contrarians Financial Expert

While oil prices are estimated to trade at below $100.00 a barrel for the next eight years,... there will be volatility that can drive prices to well above $100.00.

New York, NY (PRWEB) October 04, 2012

In a recent Investment Contrarians article, financial expert and editor George Leong reports that the November West Texas Intermediate (WTI) futures contract is up 16.7% from its 12-month low, having rallied since June’s bear market. Leong notes that the current stock chart for WTI is showing a bullish flag formation setting up, which means that higher oil prices—to over $115.00 in the best-case scenario—could be coming. Based on Leong’s technical analysis, cheap oil is now a thing of the past.

“While oil prices are estimated to trade at below $100.00 a barrel for the next eight years,…there will be volatility that can drive prices to well above $100.00,” says Leong. “Factors include speculation and troubles in the oil-producing regions in the Middle East. Hostilities in the oil-producing regions can easily trigger a spike in oil and gasoline prices.”

Leong recalls what happened in Libya, as the country was vulnerable to a civil war prior to the killing of Colonel Qadhafi. He reports that, since Libya has the 12th largest oil reserve in the world, any major disruption to the oil flow from the country could have sent world oil prices surging.

Now Leong expects the continued erosion in the major economies in the eurozone, the U.S., and China to help add support to high oil prices. He adds that geopolitical issues in the Middle East and rising tensions in the South China Seas between China and Japan will be factors, as well.

Leong also expects oil prices to be supported by the Organization of Petroleum Exporting Countries (OPEC) oil cartel. According to Leong, OPEC estimates oil prices in nominal terms could hold in a range of $85.00 to $95.00 a barrel for the rest of this decade. (Source: World Oil Outlook, OPEC, 2011.) Leong notes that OPEC also expects oil to reach $133.00 per barrel by 2035.

To see the full article and to get a real contrarian perspective on investing and the economy, visit Investment Contrarians at http://www.investmentcontrarians.com.

Investment Contrarians is a daily financial e-letter dedicated to helping investors make money by going against the “herd mentality.”

The editors of Investment Contrarians believe the stock market and the economy have been propped up since 2009 by artificially low interest rates, never-ending government borrowing and an unprecedented expansion of our money supply. The “official” unemployment numbers do not reflect people who have given up looking for work and are thus skewed. They believe the “official” inflation numbers are also not reflective of today’s reality of rising prices.

After a 25- to 30-year down cycle in interest rates, the Investment Contrarians editors expect rapid inflation caused by huge government debt and money printing will eventually start us on a new cycle of rising interest rates.

Investment Contrarians provides unbiased research. They are independent analysts who love to research and comment on the economy and investing. The e-newsletter’s parent company, Lombardi Publishing Corporation, has been in business since 1986. Combined, their economists and analysts have over 100 years of investment experience.

Find out where Investment Contrarians editors see the risks and opportunities for investors in 2012 at http://www.investmentcontrarians.com.

George Leong, B. Comm., one of the lead editorial contributors at Investment Contrarians, has just released, “A Problem 23 Times Bigger Than Greece,” a breakthrough video where George details the risk of an economy set to implode that is 23 times bigger than Greece’s economy! To see the video, visit http://www.investmentcontrarians.com/press.


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