Will oil touch $100?

Experts at Explosive Speculations are currently stating that oil is going to reach $100/barrel over the next few years. Well, we already saw that the oil prices remained in the 60s for so long so a three-figure number is not going to shock me. "The fundamentals across the globe are telling us that the price of oil has no business at the current levels," says co-owner/investment analyst Mychal Raynes of Explosive Speculations. "With Chinese consumption increasing at a whopping 8 percent per year and global demand up about 2 percent from the past year, it is only a matter of time before we start seeing price increases reflected at the gas pump."

That's why Mr. Raynes recommends that people start thinking about building an investment base that can help hedge against rising energy prices which affect everyone's pocketbook. "If an average person can invest in the industries that produce these energies, then when the energies rise in price, the investment increases in value. This type of investment strategy can make higher energy prices more bearable." And if energy prices do go down? "Well, then you're happy because you aren't paying as much at the pump. It's really a win-win for everyone, all the way around."

Mr. Raynes admits that thinking about these volatile markets can be mind boggling at times so he recommends people learn as much as they can. "During markets that tend to swing one way and then the other stress levels can definitely rise. That's why it is important to develop an investment strategy that works for you and then stick with it." But it seems that we are still subsidizing the oil companies.