Dont mind if I go long term or short term (just going to ride the wave)...
Oil is over €90 per barrel, world demand is pushing up at a rate of 1.5 million barrels of oil a day per year. Max production is probably 90 to 100 million bpd and we're currently at 86 million bpd so, fundamentally oil is still underpriced. I expect it to go over €100 per barrel next year and lift eventually to over $200 well above the futures market. Gold is following the oil-led inflation story.
One way of investing is to use future contracts - this will require that you do a lot of research on your commodity. I currently hold agriculture and currency futures contracts that I roll forward before every expiry month.
And what kind of companies benefit most by a rise in Oil prices? My gut instinct tells me that it should be the refining and drilling cos such as BP, Exxon, Shell, etc but I'm not certain on this- does anyone know??
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