4 of 5

Write now Article Tools

Where oil is concerned, short term sucks, however the long term investment has proved to be a good deal. Face it, short term investments of any type are almost always a gamble. Oil investments are no exception and may be even worse than most. Last week (written on 08/17/06) the short term outlook for oil production was heavily influenced by the Israeli-terrorist conflict in Lebanon. While, today, it looks like the conflict is settling down instead of spreading, things could easily have been different, and may change tomorrow. Another short term fluctuation was caused by the announcement that a major pipeline would have to be closed for repair. Oil prices shot up, only to fall when a subsequent announcement was made that only half of the pipeline would need to close. Unless you have insider information, these calls are a gamble.

Long term, oil looks like a great investment, although you're late getting in. While everyone is looking for a replacement, so far, no one is giving a viable alternative. Mean while, demand keeps rising faster than supply. Barring major scientific breakthroughs, world war, or another global extinction event, oil looks like a good long term investment. Of course, with the exception of scientific breakthroughs, any of these events is going to be bad news for most investments.

Good luck and good choices.

Learn more about this author, Farmer Bob.
Click here to send this author comments or questions.

Add your voice

Know something about Short term vs. long term considerations of investing in oil?
We want to hear your view. Write now!