Ride the Oil Boom

The potential for more chaos in the Middle East means oil and natural gas prices aren't going to stay down for long. Take advantage of the selloff in this sector -- now.

The subprime mess has spread to surprising corners of the markets. The price of oil, which peaked at more than $77 a barrel at the beginning of August, has fallen to $71 as of August 27. Before rebounding a bit, energy stock indexes had declined, too -- by almost 10%.

It's easy to understand the decline. The credit crunch awakened fears on Wall Street of a recession. Any economic slowing, of course, would mean less consumption of oil and result, perhaps, in lower oil prices.

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Steven Goldberg
Contributing Columnist, Kiplinger.com
Steve has been writing for Kiplinger's for more than 25 years. As an associate editor and then senior associate editor, he covered mutual funds for Kiplinger's Personal Finance magazine from 1994-2006. He also authored a book, But Which Mutual Funds? In 2006 he joined with Jerry Tweddell, one of his best sources on investing, to form Tweddell Goldberg Investment Management to manage money for individual investors. Steve continues to write a regular column for Kiplinger.com and enjoys hearing investing questions from readers. You can contact Steve at 301.650.6567 or sgoldberg@kiplinger.com.