• There was a considerable amount of money to be made on the recent and profound adjustment in crude oil prices. The low of HOD was $6.30 on the 11th of July with a subsequent high of $53.70 on December 5th. This represents an 850% change in less than 5 months. Anyone who has previously stated that oil prices reflect supply and demand should be hiding their head in the (tar) sand. Clearly this was speculation and manipulation rather than a price increase in lock-step with demand.

  • Is there opportunity to ride HOU up? Unfortunately, I think the increase in oil will be a little more prolonged and subdued than the drop and a long-term investor is far better off buying a solid energy company or two.  I personally am moving HOD profit into several large energy companies which all pay nice dividends.
  • Common sense will prevail.  The long-term trend must be a progressive depletion of oil.  Oil is a fixed resource and is non-renewable.  Our species has grown dependent upon it’s efficient and inexpensive energy.  Developed nations would die without it and developing nations seek our lifestyle.  It is inevitable that we use every last recoverable drop.  I will leave it to someone else to guess as to how long before that tank runs empty but let’s suffice it to say that is will happen.  

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