THE ENERGY COMPLEX
The energy complex consists of oil, natural gas, gasoline, heating oil and carbon emissions. Energy, in whatever form, is utilised daily by everyone. Unfortunately, these resources will run out unless we can reduce consumption, and meeting demands will be out of the question.
Oil, like gold, can offer a safe haven protection for a portfolio during times of economic volatility, political crises or any other primary factor that may otherwise affect your investment revenues. For instance, tensions between the Middle East and North Africa caused a drastic rise in oil reaching to more than 20% within a period of one month. Any further problems arising in these oil rich nations will again cause prices to spike. Pay close attention to countries such as Saudi Arabia, Iran and others along the Suez Canal.
Energy commodities affect all people, and even slight variations in price can cause significant effects on anything, from transport costs to heating costs.