Oil!

Robert Hsu, June 19, 2008

Oil, oil, oil! It's what's on everyone's mind right now. And as summer vacation and driving season shifts into full gear, it is becoming a bigger and bigger issue. I know that all of you have felt the pain at the pump. Right now in Los Angeles, the average gasoline price topped $4.50 a gallon, while the nation's current average is sitting above $4. Prices are up more than 30% so far this year and have nearly doubled in the last three years. And prices are expected to keep reaching record highs as we get deeper into summer. Even Morgan Stanley bullishly predicted that the price of oil would reach $150 per barrel within the next month.

So what's pushing oil prices to these painful record highs? It's the age-old story of crunched supply and demand. But instead of huge oil demand coming from developed countries as it has been in recent years, it is now coming from Asian countries. Record volumes of oil are being shipped to Asia, and as countries there emerge, this need will continue to increase.

Just look at the staggering growth in China and India. Their development has pushed up sharply their energy needs and oil demand, a growing share of which has to be imported. And in coming years, China and India together will account for 45% of the world's increase in energy demand. And other Asian countries that are quickly developing are following this trend, too.

As you can see, the U.S. is no longer driving world oil prices any more. In contrast, it is emerging countries that are pushing up oil prices with their increasing demand. Because of this high demand, and the rarity and high cost of new oil finds, the general sense in the market is that "peak oil" is here and that the supply/demand crunch will only get worse.

So is there a way to make money off of the oil crunch? There sure is. My Asia Edge subscribers are investing in one company that is profiting nicely from the trend and is set to profit even more with its new oil finds. To find out more about this company and my specific buy-below price, join Asia Edge today.

Sponsored Links

What's happening in the world's major foreign markets right now? Will current events affect the stocks in your portfolio? Read InvestorPlace Asia's Top Stories to find out everything you need to know in order to stay on top of global economic news.

more...

Every country has its own special customs and traditions. Being familiar with a country's culture can often make a difference in whether you gain or lose from investing in its stock market. Check out our culture section to learn more about the societies of the world's fastest-growing emerging economies.

more...

There's a lot happening around the world today, and it's important to know how it's affecting your investments. Watch the latest videos covering important Asia topics!

more...