It seems like oil prices are going ever higher. The result is that the average person is worse off when oil prices rise. It seem that rising oil prices bring nothing but extra costs o the average person.
Why oil prices will continue to rise
Naturally oil companies focus their effort on drilling oil from large accessible fields as it costs them less to extract the oil from the ground. This factor alone will push oil prices higher in the future.
How to profit from Oil price rises
To invest in oil related companies or in more direct forms of oil investments such as Oil Exchange Traded Funds (ETFs) that aim to provide the same returns as crude oil. So with oil prices set to rise even further it makes sense for the smart investor to make sure that they have invested in future oil price rises.
Are Record Oil Prices a Bad Thing?
Prices for crude oil hit a new all time high trading at over $137 per barrel. Soon, the front end crude price will begin to translate to back end gasoline prices. Higher prices at the pump translate to several things.
DEMAND DESTRUCTION
The amount of gas we use will decline as the price gets higher. $10 a gallon gas will cause sufficient pain to induce maximum demand destruction. This is the most potent weapon to fight high prices on a long term basis. When gas prices are low there is no great motivation to create alternatively powered cars. So long as gas prices remain low that will never happen. High gas prices are a "green" friendly occurrence.
Crude Fundamentals Failing
Historically, there have only been three times when commercial positions have shifted from net short, to net long while the market was at all time highs. The market declined, twice, by an average of 22.5% and once, the market rallied by 5.8%.