Source: ForexYard
One of Barack Obama’s primary initiatives during his first week in office has been focused on generating the incentives necessary to help proliferate the usage of renewable energy. Mixed with this environmental push is also legislation designed to entice auto makers to begin researching and producing more fuel-efficient cars as well as providing incentives to make them more affordable in the U.S. market.
The drastically rising Crude Oil prices of 2008, analysts believe, may have been one of the driving forces behind this recent financial crisis and recession. As the price of Crude Oil spikes upward, as it did last year, the cost of gasoline also obviously increases, which affects the disposable income of consumers. “Our leaders raise their voices each time there is a spike in gas prices,” President Obama said, “only to grow quiet when the price falls at the pump.”
By addressing this issue so directly, President Obama has pin-pointed the paradox of our push for renewable energy and fuel-efficiency. When the price of Crude Oil rises, the voice of the people echoes defiantly that the government is not doing enough to protect the people or the environment; yet when the prices come back down, the roar silences and the push for renewable energy stops. As such, the most desirable outcome would be to find a price level for Crude Oil which will maintain the environmental initiatives while protecting the wallets of consumers by helping them save at the gas pumps.
It is the belief of the ForexYard analyst team that the $30-35 price range for Crude Oil is just such a desirable level. Oil producing countries which benefited greatly from last year’s price increases began developing infrastructure projects which may now be difficult to maintain. As such, oil producers are looking to curb production and increase prices. On the other side of that equation are governments who are looking for ways to decrease dependency on oil. The race between these two forces, along with an economy badly damaged by recession, may likely go in favor of oil consumers. The downward pressure on the price of Crude Oil is evident. If you were looking for a safe investment as a forex trader, Crude Oil is where you need to be looking. An early sell position on Crude Oil at the current price of $45 a barrel carries with it the potential to earn enormous profits for the wise trader.
You can start trading Crude Oil now with ForexYard’s trading platform. Simply open one of our Standard Accounts, put forth the amount you’d like to invest, and start seeing your profits shoot through the roof!
Forex Market Analysis provided by ForexYard.
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