What’s Next for Oil Prices in 2016 and 2017

Oil prices surged during the first half of 2016. In February, the price of the U.S. benchmark West Texas Intermediate (WTI) hit a historic low of $26.21, but it rose more than 50% in the following months. The global benchmark, Brent crude, followed a very similar pattern in the first half of 2016.

Oil PricesDespite price fluctuations in June and July, Money Morning Global Energy Strategist Dr. Kent Moors believes the WTI crude oil price is currently in a sustainable range and could hit the mid-$50 per barrel by the end of 2016.

He forecasts that WTI crude oil prices will climb to the low $60 per barrel range in 2017 and sees Brent oil prices per barrel in the mid $60s next year.

Before we get into why our Money Morning oil price prediction shows these double-digit gains in 2017, here’s a recap of the 2016 price fluctuations…

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How to Profit from the Oil Price Forecast

Moors says the most prudent way to benefit from rising oil prices is to invest in a basket of oil services stocks via an exchange-traded fund (ETF). With an ETF, investors don’t have to worry about futures contracts. ETFs can be purchased and sold as easily as individual stocks.

His top pick to benefit from the forecast ranges is the VanEck Vectors Oil Services ETF (NYSE Arca: OIH). OIH holds 25 oil stocks. The top two alone are expected to post impressive returns over the next year. Those two are Schlumberger (NYSE: SLB) and Halliburton (NYSE: HAL). In the next 12 months, SLB is estimated to reach $90.29 per share and HAL is forecast to reach $50.61. From today’s prices, those targets translate to share price increases of 14% and 18%, respectively.

OIH closely follows the MVIS U.S. Listed Oil Services 25 Index, which tracks the largest 25 U.S. oil field services companies. Some of these, like SLB and HAL, are the largest oil services companies globally as well, with market capitalization of more than $100 billion each.

The exposure to the 25 biggest oil services firms means that investors don’t bear the risk of investing in small oil services companies in a range-bound oil price climate. Larger firms will make it through the oil company debt crisis in all likelihood. Smaller companies are more at risk of being acquired or succumbing to bankruptcy. Those small companies should be avoided now.

Investors can also benefit from the climbing price of oil long term through two other funds. One is the United States Oil Fund LP (NYSE: USO). The second is the SPDR S&P Oil & Gas Exploration & Production ETF (NYSE: XOP), which allows investors to gain exposure in a group of oil exploration and production companies.

Investors who want a stock to play the oil price increase are advised to buy one of Moors’ picks to benefit from its position in the pipeline, Genesis Energy LP (NYSE: GEL). Houston-based GEL is a master limited partnership (MLP).

Roughly 90% of MLP revenue comes from oil and gas. Midstream MLPs connect refiners and producers via the transportation and storage of oil.
Because they are not out in the fields exploring and pumping the wells, the transportation and storage provider MLPs benefit from rising prices, but have far less exposure to any downside in the oil patch than oil producers do.

GEL shares currently trade at $36.36. Its one-year price target, according to Thomson Reuters, is $41.25. That’s a 13% price increase.

The other upside to GEL is a very strong dividend. It is currently 7.66% – impressively better than the 2.1% average yield of the S&P 500 dividend payers.

5 Tips On How A Woman Can Lose Weight

Women are always conscious of their health and fitness. They always desire to look slim and trim. If any woman gains extra weight, she looks for a quick solution to it too, by losing the weight quickly. There are numerous ways to do so, but some of the quick weight loss tips are as follows:

TIP 1: Take low-carb diets

Carbohydrate foods are rich in the calories, but at the same time they have to be taken in low quantities. The major advantage of eating low-carbohydrate foods is that they compel you to eat less. Without keeping an eye on the amount of calories they are consuming, the weight conscious people love taking the foods with lesser carbs and few carbs. If sugars and starches are consumed in greater amount they stimulate the hunger pangs. Hence, if carbohydrates are reduced in the food the appetite is likely to decrease also.

TIP 2: Drink enough water

Water is great for metabolic activities. Adding more water to your menu will reduce the hunger pangs. Taking water in the morning is the first step to do so. Water gives a feeling of being full, thus the food intake also cuts down. The final aftermath is the loss of weight. Water is a zero calorie food ingredient. It can flush out the excess weight. An addition of lemon wedges and mint can add refreshing flavors to your drink.

TIP 3: Go for Cardio

A thirty minute session that can speed up your heartbeat will burn out your extra calories. Any such work out will help take away the extra calories from your body. Thus, it becomes a great way of staying fit and slim. Any session of cardio on a regular basis is a great help for the weight conscious ladies.

TIP 4: Add more minutes to your bedtime

Although it seems strange, but still a few more hours of a happy sleep will stimulate your metabolic rate and help you shed off your weight quickly. No matter how long you sleep, just add half an hour to your bedtime and you will feel recharged. It will add to your muscular strength, keeping you healthy and active.

TIP 5: Start enjoying the proteins

There is no blinking of the fact that proteins are a great source of energy. If you are looking for quick weight loss, then the best option is to give up the carbs and start taking the proteins in the form of meat, eggs and fish. It is a good alternative to the carbohydrate foods. It gives a feeling of fullness that keeps you away from the extra food intake. A combo of protein source, a fat source and a low-carb vegetable can be great for reducing the weight quickly.

So, if you are a health loving, lady of style, the best way to get rid of the extra weight on your body is to follow these easy tips and get a healthy lifestyle. There is no need to go for a crash diet, but instead opt for healthy lifestyle.