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3 Stocks That Win, 3 That Lose In The Oil Surge
Posted February 22, 2012
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By Hawkinvest
In an ominous sign, oil has been surging very early into 2012. Normally, oil will see a seasonal move higher around May or June, just before the summer driving season starts. The recent move in oil has been supported by investors who are interested in owning hard assets, like oil and precious metals, that can't be printed, like paper currencies.
It has also moved on concerns that Iran could block a major oil transportation route - the Strait of Hormuz. These dynamics present opportunities and risks for investors, since the price action could be a major sign to buy oil stocks and sell stocks in companies that could be hit very hard if consumers suddenly cut back on spending later this year.
A recent AP article details the current situation for gas prices:
Gasoline prices have never been higher this time of the year. At $3.53 a gallon, prices are already up 25 cents since Jan. 1. And experts say they could reach a record $4.25 a gallon by late April. "You're going to see a lot more staycations this year," says Michael Lynch, president of Strategic Energy & Economic Research. "When the price gets anywhere near $4, you really see people react. READ FULL ARTICLE HERE
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