Subscribe for 12 months with recurring billing - $199

Buy 12 months of subscription time - $199

 

Search Uranium Stocks
Uranium Price
Our RSS Feed

Uranium Updates

Enter your email address:

Follow Us on Twitter
« How to Make More Money than a Venture Capitalist | Main | Lib Dems' green boast under threat as party votes for nuclear »
Tuesday
Sep172013

Rick Rule Believes Oil Prices will Rise Regardless of Middle East Unrest

 

Henry Bonner

 

 

Oil investors have benefited from the rise of the price of a barrel of crude over the past several years. The price was in the mid-40s during the 2008 crisis, and has risen to around $110 per barrel today.

That’s quite a move, and, if you listen to the mainstream press, you’ll get one explanation for the current high price. But Rick Rule, Chairman of Sprott U.S. Holdings Inc., offered a different perspective in a recent oil and gas commentary to clients.

“The mainstream pundits will tell you that oil is expensive now because of the unrest in Syria and Egypt,” Rick begins. “But the truth is that Syria and Egypt don’t produce much oil.”

So why are oil prices high?

“The real reason is that there are expectations of a slowdown in oil exports brought about by the lack of sustaining capital investments in certain countries in South America.”

In our last note, we promised to expand on Rick’s case for higher oil prices, because of the long-term consequences of governments’ interference in the oil industry in certain South American countries.

Rick argues that higher demands from governments for a share of the revenue from oil operations, especially in Venezuela and Mexico, led to lesser re-investment in these countries by oil companies.

As a consequence, Rick explains, oil production in these countries is in decline.

To read this interview in full please click here.

With gold, silver and Uranium stocks being out of favor one must decide if this is a problem or an opportunity. We have steadfastly refused to buy gold and silver mining stocks for the last two years and as evidenced by the HUI we feel that our decision to hold back has been vindicated. The damage done to the mining sector may not be over yet but this demise is starting to offer up some exciting opportunities in my view.

Great care will be needed in the selection process in order to generate a reasonable profit and that’s where our new venture begins. ‘Stock Trader’ has begun trading on behalf of ourselves and our much valued subscribers, all exciting stuff which we are really looking forward to, if you wish to join us then please subscribe below;

Subscribe for 12 months with recurring billing - $199

Buy 12 months of subscription time - $199

Don’t forget if you are new to investment in the precious metals sector then you can subscribe of our FREE newsletters regarding gold stockssilver stocks and uranium stocks, just click on the links and enter your email address and we will email you our articles along with other interesting posts.

Please remember to check your spam folder once you have subscribed to ensure that your verification has not gone astray and you are getting our emails.

As regular readers will know skoptionstrading has capped its membership, so the best we can offer you at the moment is a place you on the waiting list which you can do via this link, thank you.

PrintView Printer Friendly Version

EmailEmail Article to Friend

Reader Comments

There are no comments for this journal entry. To create a new comment, use the form below.

PostPost a New Comment

Enter your information below to add a new comment.
Author Email (optional):
Author URL (optional):
Post:
 
Some HTML allowed: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <code> <em> <i> <strike> <strong>