High times at Ameratex Energy Oil and Natural
With gas prices down the past few months, due to economic conditions, they are poised to start
increasing in price to the consumer and investments for stockholders and commodity traders.
Now may be a good time to get into oil and gas investments for the future.
Normally, propane and heating oil prices have fallen in New England and Atlantic Canada by
about 10% since January 1st, 2012. The primary driver of heating oil and propane prices is the
price of crude oil, which has been falling since January 1st, 2012. Extreme weather, seasonal
demand, supply disruptions and speculation can also affect short-term propane and heating oil
prices. Therefore, to get an idea of where heating fuel prices could go, you have to understand
where crude oil prices could go.
Ameratex Energy crude oil prices are driven by real and anticipated supply and demand. An
increase in supply or a decrease in demand leads to lower prices. A decrease in supply or an
increase in demand leads to higher prices.
The mutual funds that invest in the energy sector typically invest in large and independent oil
and gas companies. They also invest in drilling, which can be more speculative in nature, but
give a larger return if oil or gas is discovered.
Oil prices have primarily lowered because of concerns over the economic growth rates of the
United States, China and Europe. Slower economic growth leads to lower demand for oil, and
therefore lower prices.
Global markets are hard to forecast since there are too many variables. Therefore, no one can
accurately predict the price of oil - beware of people or companies that try to convince you they
can predict crude oil prices.
These events will likely lead to lower 2012 crude oil prices:
Lower predictions for the global economic growth and recovery, and therefore lower oil demand;
No resolution to the European debt crisis, and therefore a belief that Europe's economies will
continue to suffer;
Conflicts in Africa and the Middle East get resolved in 2012 and oil supply increases (e.g.
Yemen, Syria, Sudan and Iran).
These events will likely lead to higher 2012 crude oil prices:
Decrease in oil supply from African and Middle Eastern countries due to conflict or economic
sanctions (e.g. Yemen, Syria, Sudan and Iran);
AmeratexEnergy Forecasts for global economic growth improve, particularly in the United
States, China, or Europe;
The European debt crisis is resolved in 2012 and Europe's economies improve.
There are many companies that drill for oil or gas as speculative ventures. There are also
established companies that have been around for years. Some of these companies stop
operations when the cost to produce outweighs the consumption and prices they can sell for.
Unlike other industries, large oil-gas investments companies are very astute at monitoring cost
of production and profit margins.