Crude Oil Trading Using Turbo Certificates.docVIP

Acta Montanistica Slovaca Ro?ník 15 (2010), ?íslo 1, 1-4 Crude Oil Trading Using Turbo Certificates Michal ?oltés 1 This paper has two objectives. The first one is to contribute to the debate regarding the validity of the Hubbert Crude Oil Peak Theory. Its acceptance should guide economic policies, especially over time. The other objective is to characterize modern investment tools for short- term investments, or more precisely for trading, which use the leverage effect significantly. They are so called Turbo Certificates and they are used to trade crude oil. Key words: Hubbert curve, crude oil peak, turbo certificates, trading, profit Introduction The financial crisis, and especially its main consequences, namely the dramatic fall of stock markets and the subsequent economic crisis, should draw our attention to the alternatives of further development. It is also important due to the fact that within the social system we live in the decisive responsibility over the quality of life lies on each individual. Although states do and will, of course, have the responsibility over the global development, the future lives of individuals will depend on themselves more and more. However, objective regularities must be respected. Hubbert Crude Oil Peak Theory Geophysicist Marion King Hubbert predicted already in 1956 that the crude oil extraction in the USA would peak in the 1970s and then would start to fall. Although nobody took it seriously at the time, the truth is that the amount of extracted crude oil in the USA had grown until 1971 and since then it has really been declining continuously. America (except for Alaska) had already reached its crude oil peak. Since then 33 out of 48 oil-producing countries are said to have reached their crude oil peaks [4]. It is even more disturbing that it has been reached also by 13 out of 31 biggest producers [4]. Sin