Philip Moufarrige - Startups seen as a route higher investor return in crude oil

As the investment based on buy and forget seems to be a very decent bet these days when it comes to crude oil cases. But to find a way to track the price is however not a straightforward work. Philip Moufarrige is one of the eminent people involved in crude oil extracting. If somebody will ask some of the adventurous investors to give a name to an asset that can really double the value for next five years, the only name that comes in mind of people is crude oil.

It may also come up with the fact that it could really halve the value as well but for those products in the market with high risk, to play somewhat like buy and forget then it definitely has to be crude oil which would fit in the criteria. Even if you analyze that you are existing in the high supply era and low demand, then you are definitely wrong. Such commodities put sizeable gain to the products in the market and still remain suppressed by the current standard of the market. Philip Moufarrige has contributed a lot in this felid.

An average of 17 numbers of forecasts which were compiled by Bloomberg in the last week was Brent crude at the end of the year at approximate $48 barrels. All of a sudden there was a hike on the price seen lately. Even if the investing question is put to an expert they will also never neglect this fact, this is a real time, good source of investment. Philip Moufarriage has brought about lots of changes in this field.

From the view of our experts:

There are many people who would happily take this chance to bet on this factor. The only question which arises is that, is there any possible way to do that? Many people have enough of money to invest but they are not aware of where to invest so as to get a better return on investment. The Exchange Traded Fund offers you with very low cost investing criteria for most of the investors who are doing it for the first time. Philip Moufarriage will be there to guide you all through this procedure.

Moreover, there are some collective form of investment too, which seeks to the mirror performance and it is considered as an asset. This could be basically done in case of crude oil and other such commodities. Exchange Traded Fund could be carried out for various small investors. In such cases it could be compared with some other possible avenues for all those who want to bet on it.

About Exchange Traded Fund:

Exchange Traded Fund is listed in the list of stock exchange and almost all the investors buy and sell shares in it. Those products which are designed to stock market price can easily match to their entire chosen index much closely, by buying share from the index either directly or by matching the overall return through more complicated form of financial contracts. But somehow crude oil is a different story overall.

Like the certificates based on sharing, you cannot store the oil electronically or in any kind of filling cabinet. Even after comparing it with gold, which can easily be stored physically on behalf of the one who is investing in it. But at times it also has to be transported from one place to another. But, sometimes investing on oil is a very complicated business.  

Darius McDermott the managing director of Chelsea Financial Services had said something on this note, he said, The main problem is that it is too difficult to store 1,000 barrels so that Exchange Traded Fund comes out to be the next big thing in the market. Philip Moufarriage also agreed to this. It also helps knowing the price of the oil in future. At least it could easily be estimated. He wants that in future people should be able to buy oil at a very affordable price which would not at all be heavy on their pocket.

Nevertheless, the future price is greatly affected by the current price of the crude oil. This is known as the spot price. But at times there are also some subjects that can include changes n the cost of the crude oils. It also includes the cost of storing and transporting the oil. Exchange Traded Fund needs to be replaced by some of the other essential elements to be exported and imported.

Whenever the price of the oil is expected to rise, the new contrast which has to be replaced becomes more and more expensive. At times it becomes very difficult for the exporter to shoulder that particular cost. Sometimes it is also considered as the underperformance cost. The term used for the future market getting more expensive is known as Contango and when they are getting cheaper it is known as Backwardation.

In this regards, McDermott says that he had researched to follow the crude oil price quite closely when the market was facing Backwardation but it may undershoot as it moves to Contango. The only problem faced by the investors in that when and how to know about the details of the market, they remain totally unaware of the ups and downs in the market. Philip Moufarriage is an expert in dealing with these problems.

To add more to this it has been said that the uncertainty of the hike in price may lead to a great loss to the whole market. People believe that they should at least be well aware about the ups and downs of the market so that they could also deal efficiently with it. Those who buy the future contracts are just one month away from the expiry period. This will lead you more closely to the deadline. One could ultimately figure out that this potential of the investors may get the wrong product to high rate. In such cases most of the financial professionals may have to struggle. Philip Moufarriage has really done justice to the crude oil industry.