E The Potentially Rising Cost Of Oil

Oil hasn't been the highest performing investment/commodity as of late.  For the past several years, oil has been at somewhat of a historically low price (all things considered; like inflation etc.).  There have undoubtedly been various currents flowing towards this end, among them OPEC members increasing outflow from their reserves, the rise of the "Bakken", etc,. and the energy commodities being produced in record amounts via fracking etc., technologies, and the push for lower carbon emissions, and the sort of various "Green" initiatives that have become almost commonplace in the past decade or so.  None the less, oil and petro-chemical related energy sources may remain "king" of the energy sector for quite some time, and perhaps the world may come to acknowledge this sort of glaringly present reality in the coming years, and in turn their may be price-increasing re-pricing of said petro-chemical commodities and the investment opportunities associated with them.

Various factors may sort of promulgate into forming the economic/political reality that may drive oil higher in price in various regards.  Amongst these reasons may involve/include, such factors as those that may be deemed geo-political factors, monetary policy related factors, macro-economic factors, and economic factors on a company by company level as-well. 

- Geopolitical factors

 As of late the Trump administration has been suggesting that it is, in so many words, not the biggest fan of the "Iran Deal" which sort of loosened various regulations on Iran, and in general sort of "lessened" the tension being placed on Iran in general.  Said sort of climate of sort of "bartering" with Iran was sort of put in place towards the last term of the previous administration per se.  However, now that those sort of conciliatory tones are perhaps diminishing, it may be likely to have a sort of heightened tension in the region, which is of course known for it's local oil production and energy transportation routes, and hence perhaps sort of allowing their to be an "opening" for notions of rising oil prices to sort of filter to the surface if one will.  Counter to this may be such items as China for example and its recent 2020 targeted "Green initiatives" etc.(, however, these of course may still be a long way from bearing fruit in a meaningful macro-economic way perhaps.

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David B. Johnson 9 months ago Member's comment

Snap up the #oil stocks now while they're cheap. But keep on an eye on developments in alternative energy which will eventually surplant oil completely.

Bill Johnson 9 months ago Member's comment

if it wasn't clear, I enjoyed this. Looking forward to more by you.

Angry Old Lady 8 months ago Member's comment

Yes, good stuff.

David Stafford 9 months ago Author's comment

Thank you :)

Bill Johnson 9 months ago Member's comment

Yes, I think we all feared the good days of cheap gasoline wouldn't be able to last forever.

Doug Morris 9 months ago Member's comment

Good read, thanks