Breaking Down the Cost of a Gallon of Gas
The price of a gallon of gasoline ranged from $3.27 along the Gulf Coast, to $3.90 along the West Coast in November 2012; ever wonder how much of that goes to the government and how much goes to exploration and refining companies? Then there are the gas stations and oil traders looking to make a profit as well. Let’s look at the breakdown of who makes what, and also why prices vary across the country – sometimes drastically [for more gasoline news and analysis subscribe to our free newsletter].
Time To Buy Oil?
The past few weeks have been rough on crude oil, as the massive commodity has been seeing a major decline in price. But with a sudden drop, this fossil fuel may be offering in a nice entry point to investors looking to add some energy exposure to their portfolio. Since peaking in mid-September, crude has suffered losses of nearly 14%, as market turmoil has led to a healthy sell-off. Much of the speculation was sparked by the uncertainty over the presidential election and which candidate would come out on top [for more crude oil news and analysis subscribe to our free newsletter].
U.S. to Top Saudi Arabia’s Oil Production
Saudi Arabia has long been known as the world’s most dominant producer of crude oil, as the Middle East is rich with deposits of this fossil fuel. But the growth and rapid development of U.S. crude output has us on pace to dethrone Saudi Arabia in the not-so-distant future. We are currently on pace to average 10.9 million barrels per day for 2012, marking a 7% growth from the prior year and the largest single year jump since 1951 [for more crude oil news and analysis subscribe to our free newsletter].
The World’s 5 Largest Oil Consumers
Crude oil is an addiction that our global economy will not be able to break anytime soon. The fossil fuel is involved in many facets of our everyday lives whether we realize is it or not, and demand for this commodity is only growing. As emerging economies around the world continue to grow and population figures increase, consumption of oil is only going to jump. Below, we take a look at the 5 biggest oil consuming nations in the world to keep an eye on in the coming years [for more crude oil news and analysis subscribe to our free newsletter].
Top 5 Global Oil Stocks by Market Cap
Oil has long been, arguably, the most popular commodity on the market, as investors and traders alike look to hop in on the fossil fuel. Though most people simply think of gasoline when they hear the term crude oil, this commodity is actually a vital part of our everyday lives. As a result, companies that are involved in the exploration, production, and selling of crude oil also play a critical role in the market. For those who have a bullish outlook on oil prices and the oil industry, we outline five of the biggest oil companies by market cap [for more gold news and analysis subscribe to our free newsletter].
Commodity Stock Plays in the 2012 Dogs of the S&P
Many investors are familiar with a group known as the “Dogs of the Dow”, or the 10 highest yielding stocks at the end of the prior year. Many investors use this strategy to help pick securities for the coming year, as they will not only offer strong dividend yields, but it may also be that their prices have been beaten down. Dividend yields and stock prices have an inverse relationship, meaning that a higher yield could reflect a poor performance from a stock in the prior year. Many feel that the dogs are oversold and the fact that they are still offering high dividend yields means the company is still strong [see also 12 High-Yielding Commodities For 2012].
Commodity Stock Plays in the 2012 Dividend Achievers
In today’s current market environment, one that is plagued with volatility and offering low rates for those trying to earn a steady income, investors have begun to widely adopt dividend strategies. Not only can dividends help keep a portfolio in line with inflation, but they also add a predictable income stream to a portfolio through cash distributions on a regular basis. But when it comes to commodity investing, dividends rarely overlap. The majority of commodity investments are made via futures contracts or other funds that invest directly in the asset itself, but there are also ways for commodity investors to gain access to their favorite tangible assets while still maintaining a strong income stream [for more dividend news subscribe to our free newsletter].
