Crude Oil Future

The crude oil future market extended gains this week keeping the Long Term trend intact for many people involved in commodity investing as the Crude reality is clear. After a precipitous decline under $50.00, the 2007 crude oil future market has screamed higher trading $72.81 this week. My February 9th 2007 investment newsletter was certainly specific for those involved in futures trading... It read as follows: the crude oil future market humiliated the short-term futures trading bulls dropping more than $28.00 a barrel due to warmer weather in the U.S. earlier this winter. While the crude oil future market has rallied $10.00 recently due to below normal temperatures futures trading clients should understand the crude oil future market gyration was just another example of futures trading volatility that will always eat the ill-advised short-term commodity investing novice into monetary obscurity.

My February 9th investment newsletter went on to say the winter crude oil future market debacle was nothing more than a correction as the Long Term trend is still intact technically, and more importantly fundamentally for those involved in futures trading. OPEC said Crude Oil supply is not to blame for high crude oil future prices as OPEC is ready to pump more but sees no need and has rebuffed calls from consumer countries for extra Oil to lower prices from the mid $70.00 level.

Geopolitical concerns are also affecting the crude oil future market. Those involved in commodity investing should understand that while the President is steadfast in this foreign policy disaster I do believe he is correct when he says if we leave the region there could be a major political meltdown that could promote a regional war that would in fact propel the crude oil future market into triple digit price levels.

We will eventually leave Iraq leaving a political quagmire which will put extreme pressure on Producers worldwide for alternative energy innovations that will in fact create demand for many Commodities. It’s obvious... the crude oil future market will lead the way.

There is a risk of loss in futures and options trading. You should carefully consider whether futures trading is appropriate for you in light of your investment experience and objectives, financial resources and other relevant circumstances. PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS.

Information herein has been obtained and prepared from sources believed to be reliable; however no guarantee to its accuracy is made. Comments contained in these materials are not intended to be a solicitation to buy or sell any of the commodities mentioned. Opinions expressed herein are the opinions of the author only and not the opinion of any firm the author may be affiliated or associated with.