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Congress finally sees the light. It's about time!

The recent debate over how to prohibit oil speculators from manipulating crude oil prices came to a temporary halt earlier this week. A government task force said it had found no evidence to suggest that speculative investors were driving up the cost of energy.

The news media has been pointing the finger at oil speculators for months, but this recent study concluded that the rise in crude oil prices can be attributed to fundamental factors like rising demand and limited worldwide supply of energy supplies.

I guess it's easier to believe that Wall Street is overrun by unscrupulous investors trying to get rich quick. Obviously, the profits we've seen from companies within the energy sector have been astronomical. Just look at one of the gains on my Global Growth Buy List: Gran Tierra Energy (GTE) is up 44.2% in 13 weeks–that's 137% year-to-date!

My Blue Chip Growth Buy List has struck gold–or is it oil?–too: Transocean (RIG), National Oilwell Varco (NOV) and Cameron International (CAM) are up 43.8%, 42.66% and 40.11%, respectively.

Since this is clearly a supply and demand issue, our market pressures are here to stay. In this market, stagflation–high inflation coupled with sluggish economic growth–is the name of the game. High commodity prices, particularly in energy and food, won't subside anytime soon.

Reality-check: The current supply level simply cannot meet the demand for crude oil over the long term. Even as we drive more fuel-efficient cars in America, emerging economies like China and India are seeing double-digit increases in energy demand every year! We're now faced with a different kind of market–one that assumes rapidly growing demand and level supply. This is why energy sector companies–including explorers, producers, refiners and equipment suppliers–continue to outperform the broad market as crude oil prices rise. We need these companies to expand existing reserves and identify new ones.

It shouldn't come as a surprise that investors are flocking to energy futures. It's Investing 101: Follow the money! Crude oil futures yield the highest returns. Even the government task force assigned to investigate the futures markets concluded that speculators are not fair scapegoats for rising prices!

So you see? High crude oil prices aren't the product of some Wall Street conspiracy pioneered by futures market speculators. And the only way to bring those prices back down is to invest in companies that have the capacity to produce more supply. Still, it's going to be a long time before equilibrium is restored and crude oil prices significantly recede.

High crude oil prices will persist over the long term, which is why I've consistently recommended that subscribers across all four of my services invest in energy sector companies.

It's not too late for you to profit from high crude prices. Join one of my services today!

Recent Market Analysis Articles:
07.24.08 - Oil Speculators Scapegoats No More!
05.29.08 - Where to Invest to Profit from Rising Food Prices
05.27.08 - Stimulus Package: The President's Plan
04.16.08 - A Look at the Current Market
04.04.08 - Earnings Season: Reaping the Benefits of Investing Money

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