The question of how to invest in oil became more complicated when just a day after hitting its high for the year of $63 a barrel, the price started to slip to close to $61 as the oil trading day begins to wind down. Crude oil prices have been tanking considerably in the =past few weeks. Once at a high in the past 52 weeks of $109 a barrel, crude dropped all the way down to $50 a barrel within recent weeks and at one point oil economist projected that oil price could seep into the $30 a barrel range. Other recent reports regarding production from the United States shale oil sector and OPEC has giver new bounce to the price of crude and hope to oil investors that crude prices are on their way back up. If U.S. shale production continues to lag in the next couple of months crude could be traded in the area of $80 a barrel before the end of summer. Crude Oil Prices Continue to Change
The pricing is still contingent on what the oil producing countries decide to do with new crude oil from Iran and Iraq which has not yet hit the open markets but is expected to be traded some time this year. Some oil economists, like Christian Broda (linkedin.com), view the U.S. production slow down as an initial step to make room for oil pricing when the new Iran and Iraq oil enters the market. This would drive prices back down to the range of $40 or $50 a barrel instead of $20 or $30 a barrel if no action by either OPEC or the United States is taken on current production.