by Jerry Hodge

Created on: May 05, 2008

The huge demand for oil, especially in emerging markets like India and China, is creating fantastic opportunities to profit from energy stocks. Combine this with uncertain oil reserves and we have a recipe for significant profit.

I am new to the world of stock investing. I started only a few months ago, investing in stocks and trading commodities. I am doing quite well and just this weekend predicted the price of oil would go above $116 per barrel. I am certain we will see $120 per barrel over the next few months.

Concerning energy stocks, I like oil and coal. Now is the perfect time to invest in coal and oil. Coal is going to make a significant comeback in the United States. The consumption of coal in China is going to be huge, not only for the Chinese steel industry; but also as a source of energy.

I have stock in coal companies both in the U.S and China and before the end of the summer I plan to own thousands of shares in a company called PUDA Coal. This is a Chinese company that supplies coal to the steel industry. They have very good management and a strong customer base.

I also like a coal company in the Eastern United States that produces and supplies utility grade coal. This company's shares are currently trading under four dollars per share.

I am also investing in stocks of oil drilling and exploration companies here in the United States. There are some great values now. I look for companies that have a good track record, strong assets, viable leases and most important, producing wells. There is plenty of oil, right here in the good old United States.

I am certain that the price of oil will reach close to $180 per barrel, especially as stronger demand kicks in this summer. Companies like "Abraxas Oil" a drilling and exploration firm, could do very well if the price of oil comes close to that price. I trade (oil commodities), for my daily and short term profit and oil and coal stocks for growth and long term profit.

There will be incredible profit opportunities for those trading in oil commodities. The individual small investor, can now trade oil using "Binary Options." A savvy, intelligent trader could make excellent daily income, trading oil with Binary Options. Your losses are very limited and the profit potential very good, provided you correctly determine the daily price of oil. I am finding this is not as difficult as it appears. This week I have done very well.

The price of oil will continue to rise significantly. Prices may recede for a time, but huge world-wide demand, supply shortage concerns (real or perceived), and problems in the Middle east will insure that prices of oil and gas will be high. Each of these issues will conspire to make energy stocks an attractive investment.

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