The following is a sponsored blog post:
Being a rather astute investor like most of you, I tend to only make investments that I feel are right for me or that are more than likely to pay off. While most of these are reviewed regularly, they are longer-term holdings that don’t require any intraday fiddling or spread betting accounts, but that doesn’t mean I don’t take an interest in these. I have a few accounts that I’ve opened courtesy of some decent reviews on sites like reviews.spreadbetting and recently I have been quite active on a few of them.
Petroleum / Crude Oil is the most widely traded commodity and since 2014 it has been going through a rather torrid time. Having once been over $100 a barrel, it sunk down to under $27 this February and only recently has it started to resurface, hitting a 2016 high of $44 the other day before ebbing back to circa-$41. A casualty of huge oversupply, OPEC’s late attempt to try and convince countries to limit their production and of course Iran being granted permission to export Oil again, the commodity had taken a rather large hit and by most investors’ opinions, is still not safe yet. Fortunately though, despite numerous countries refusing to comply with cuts to their production levels in Doha, this year has seen a huge increase in demand from Saudi Arabia and India meaning the stockpiles are actually starting to be used rather than increased.
With oil now sitting firmly above the $41 mark, and as an investor myself, while I have enjoyed making a small profit off the market volatility and of course the cheaper fuel as a regular Joe Bloggs, I don’t see any more huge drops in its’ base price but rather a steady increase over the year back to the $60 mark, dependent on how many rate rises the FED decide to throw out this year. Although many of you may be wondering whether it is the right time to get involved or get out if you are already knee-deep, all the signs point to the need for the price to re-stabilize and it seems a reasonably safe bet to make.
So if you haven’t already dabbled in the Commodities market, check out some of the market news and try and wrap your head round it. It is a literal goldmine (excuse the pun) and for someone with the patience to tackle intraday trading, they can earn a relatively decent profit with the volatility being seen (just like the Kuwait strike and subsequent cancellation led to 3% jumps and then falls). Just make sure you are confident before placing any trades as it is a very different beast to your typical portfolio management.