London, 14 May 2011

After selling off nearly 14 percent last week, oil prices finished the week slightly higher at $99.65 per barrel (WTI). While the end result was a net positive, the volatility continued. Oil prices per barrel reached $104, then fell to around $96, before nesting just below $100.

As an investor, this volatility can be difficult to handle. Throw in the uncertainty of today’s geopolitical environment, and investors feel the need to downsize their positions in commodity investments, such as oil.

U.S. Global Investors think markets could remain volatile in the short-term, but here are three long-term indicators to support $100+ per barrel oil prices.

1) Long-Term U.S. Dollar Weakness

2) Demand from Emerging Markets Outpacing Developed Market Demand

3) Majority of Global Oil Reserves Located in Geopolitically Unstable Regions

Ends -- Commodities Now

By Frank Holmes, CEO and Chief Investment Officer, U.S. Global Investors. Read more at:

http://www.usfunds.com/investor-resources/investor-alert/