Oil prices seem to be going up. Whether this is a temporary effect or a long term trend can be debated. However, arguments supporting a long term rise of the oil price include the following:
1. Rising demand for energy in India, China, Brazil and Russia and other as the population continues to buy automobiles and production continues to expand.
2. Continued and perhaps In creased Turbulence in the Middle East
3. Declining Production from Major suppliers such as Saudi Arabia
4. Quantitative Easing and the anticipated price inflation of all commodities including oil.
5. The increasing cost of accident and clean up costs and exploration production safeguards in light of the recent spate of oil spills around the world.
6. Nuclear Reactor disaster in Japan that will create a need non-nuclear energy while plants are closed.
Investors in Thailand are generally limited to the Thai Stock Exchange and its related entities and Thai mutual fund companies. Rising oil prices do not favor all oil companies. Rather, rising oil prices favor Exploration and Production companies, the companies that pull the oil out of the ground. In Thailand there is only one publicly traded company PTTEP. As far as mutual funds and exchanged traded funds, your only option is AYF Funds as they have a feeder fund into Deutsche Bank Powershares Oil fund.
There is, of course, always the option of sending your money out of Thailand and investing in larger bourses and other brokers.
{ 0 comments… add one now }