Oil prices are predicted to fall further, presenting an opportunity for investors to buy cheap. The current oversupply of oil, coupled with Iran’s imminent return to the oil market and the slowdown of China’s economy, is expected to push prices down. The oil industry has endured similar downturns in the past, with the most recent one occurring in 2008 when prices plummeted from $145 per barrel to $34 within six months.

Despite these challenges, the industry has always bounced back, offering investors substantial returns. The key to capitalising on this opportunity lies in identifying companies that can weather the storm. Investors should look for firms with low production costs, minimal debt, and a strong balance sheet.

Investing in oil now could be risky, but as history has shown, those who buy when prices are low and sell when they rise can reap significant benefits. It’s crucial to note that the recovery might take some time, and investors should be prepared for a long-term commitment.

Oil prices are cyclical and have always rebounded from lows. As such, the current downturn could be an excellent buying opportunity for savvy investors. The trick lies in picking the right companies to invest in and having the patience to wait for the inevitable upturn.

Go to source article: http://www.forbes.com/sites/investor/2015/08/04/the-oil-low-is-coming-so-prepare-to-buy-cheap/3/