Crude Oil Prices in 2010

Crude oil prices have been the driving force in the economy of a country - whether it is an oil producing country or oil consuming one. But the important factor for any economy is the price of the oil. Crude oil prices are determined by supply and demand - just as any other commodity like sugar or wheat, with wide swings in price when there is a shortage due to cuts in production by oil producing countries, or increased demand, or an oversupply due to increased production or drop in demand.

The price of crude oil can also see huge swings due to war, government restrictions, currency fluctuations, and trading in oil futures and speculation. The cycle of swings in crude oil prices can extend over months and years. The current crude oil prices are at an all time high and an increase in prices is inevitable as crude oil is a depleting resource and cannot be renewed like Solar Energy.

This is where investors can make money. Investing in Oil is just like investing in the Stock or commodities market, but most people, especially small investors, are wary of investing in oil. Crude oil investments can be a bit complicated and proper analysis and research should be done when evaluating investments. Investing in oil is as risky as any other investment in Real estate, Gold, currencies, or commodities. At the end of the day, it's the profits that matter. But to make profits, an investor must study market trends, movement of Crude oil prices, and the supply / demand gap.

Investments in oil need not be in millions and billions, as a small investor can opt for Oil ETFs to make a handsome profit. For small investors, the easiest and simplest way to invest in oil is by using OIL ETFs (Exchange Traded Funds). Just like trading in any share, stock or Fund, a small investor can make investments by buying and selling ETFs from a broker, and may or may not require a small initial deposit to start investing / trading and making profits.