Category: Crude Oil
The analysis published under this category are as follows.Tuesday, June 04, 2013
New Arab Spring Could Breed Chaos in the Energy Markets / Politics / Crude Oil
Dr. Kent Moors writes: Investment opportunities in the energy markets always bounce between questions of available supply and prospects for demand.
These days many commentators in the U.S. are viewing excess domestic shale gas and tight oil as a factor in restraining energy prices. Meanwhile, their colleagues in Western Europe forecast continuing economic malaise, translating into a similar result.
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Monday, June 03, 2013
IMF Recycle Peak Oil Theory / Commodities / Crude Oil
OIL AT $750 PER BARREL
Since late 2012, on several occasions, the deputy chief of financial modeling at the IMF (International Monetary Fund), Michael Kumhof, has said in interview that: "Ignoring the peak oil issue would be highly unscientific, even irresponsible".
While the IMF remains officially neutral on the subject, Kumhof and his colleagues claim to be certain that the scientific basis of their concern, which includes the thermodynamic theory of entropic energy dissipation, is inexorable. In a certain timespan - which they do not define - oil prices could rise by "up to 800%" compared with current prices. To the extent that Kumhof sets timeframes, this process of rising oil prices might begin by 2017 and, Kumhof claims, will go on "for ever".
Tuesday, May 28, 2013
How to Invest in Crude Oil's Final Frontier / Commodities / Crude Oil
Tony Daltorio writes: Investors searching for how to invest in oil in 2013 should be focused on these latest developments from the Arctic.
In fact, countries are racing to get a piece of what could be the final frontier for oil...
As ice melts in the Arctic region, oil and gas trapped beneath the water becomes more accessible.
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Sunday, May 26, 2013
Is Crude Oil about to Breakout to Higher Levels? / Commodities / Crude Oil
Light Crude oil and the Energy Sector Select SPDR ETF (XLE) normally trade in similar trends. In early May, XLE broke above a significant resistance level of $80 and moved to a new high. However, Light Crude has failed to follow the energy ETF and remained pinned under the $98 resistance line.
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Wednesday, May 22, 2013
Crude Oil Price Manipulation Awakens Libor, Enron Ghosts / Commodities / Crude Oil
Ben Gersten writes: Last July, we warned you that oil prices could potentially be manipulated in similar fashion to the London Interbank Offered Rate (Libor), and now a recent raid of major oil companies highlights this growing danger to the $3.4 trillion-a-year crude market.
The European Commission last week stormed the offices of Royal Dutch Shell PLC (NYSE ADR: RDS.A, RDS.B), BP PLC ( NYSE ADR: BP), and Statoil ASA (NYSE ADR: STO) as part of the ongoing investigation to find out whether companies are manipulating oil prices and, if so, how long it has been going on and the possible ramifications.
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Wednesday, May 22, 2013
Why Crude Oil Is the New "Gold Standard" / Commodities / Crude Oil
Dr. Kent Moors writes: Something very interesting just happened at the 2013 MoneyShow in Las Vegas.
The purveyors of doom and gloom were all still hawking their services there. But the primary solution they offer - a cure-all elixir for everything that ails markets - was beginning to wear thin.
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Sunday, May 19, 2013
Crude Oil Price Rides With The Asset Bubble - But Not Forever / Commodities / Crude Oil
BUBBLE TROUBLE
Indicators as wide-ranging as real-versus-official inflation indexes, T-bond fundamentals against daytrade technicals and all major stock markets hitting the roof have a faithful tracker in the paper oil asset boom. For many, the orgy of central bank "easing" is a prime mover of this megatrend, and the attitude of central bankers can be gleaned by the comment, reported by Reuters May 13, from the head of Italy's central bank, Ignazio Visco, who is also a policymaker of the European Central Bank. Visco suggests that the ECB could cut its deposit rate below zero, effectively charging banks for parking any spare cash they do not lend. Although paper gold has now wilted, with plenty of help from market manipulators oil has temporarily, only temporarily gone the other way.
Sunday, May 12, 2013
Will Crude Oil Futures Stop the Fed’s QE Program? / Commodities / Crude Oil
The sell-side analysts and economists are reminding retail investors that risk assets in the United States have been on quite a tear to the upside recently. A correction now lasts a matter of days, if not hours before the bulls push equity prices even higher.
The Federal Reserve is winning the reflation war using cheap money and massive levels of liquidity to help drive risk assets higher and interest rates artificially lower. Unfortunately for domestic investors searching for yield, they find that they are forced to incur higher levels of risk in order to satisfy their growth and income needs. There are significant risks associated with higher than average fixed income returns and the cost will be felt should we see any correction in the future.
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Wednesday, May 08, 2013
Peak Oil Revisited - Oil Limits Are Now Debt Limits / Commodities / Crude Oil
LIMITS TO GROWTH
Oil and energy limits are more complex than what we have imagined so far. The crossover from OECD Old World dominance of oil market demand, to Rest Of World dominance was more than 7 years ago, but the perception of what this means has been slow. Very slow.
Monday, April 29, 2013
CRUDE OIL Turns Bullish, Could See $95.00 / Commodities / Crude Oil
OIL accelerated higher on Thursday, and more importantly closed well above the upper parallel trend-line of a base channel. That's a very strong indication of an impulsive recovery, as this break (circled) usually occurs in the middle of a wave three of a five wave rally.
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Friday, April 26, 2013
The Crude Oil Price Crash Of 2013 / Commodities / Crude Oil
GOLD, OIL AND THE "SURPRISINGLY STRONG" DOLLAR
To this heavyweight trio for deciding investor sentiment in the commodities space, we can add sovereign debt, interest rates and currency valuations, in a cocktail mix that reads badly for oil above $85 per barrel - for Brent.
Exactly like gold, market manipulation to generate a Fool's Bounce and drag in latecomer investors to shred and shear, is heavily evident in the oil market. Now traditional, the short term bounces in commodity prices driven by the Eurozone merry-go-round of ECB rate easing, and the linked but totally irrational strengthening of the euro, are able to be promoted as "realistic" or "fact based".
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Friday, April 26, 2013
Crude Oil Targets Rally to $93 / Commodities / Crude Oil
Crude Oil Is Looking Impulsive On the Intra-day Basis; Could See $93.00
Oil is forming an impulsive price action from an 87.87 swing low. The reason is recent strong reaction towards the 92.00 figure yesterday - very strong and sharp in a short period of time. That’s the personality of a third wave, so we think that the market is forming a five wave pattern. With that in mind, be aware of more upside, this time towards the 93.00 mark.
Wednesday, April 10, 2013
A Major Breakthrough in U.S. Oil Exports May Be Coming / Commodities / Crude Oil
Dr. Kent Moors writes: As the crude market continues to show considerable volatility, price gyrations are prompting another round of concerns over supply and production.
There isn't a shortage to worry about right now.
But whenever we have some issues on the demand side, attention shifts to the supply currently available on the market. And it's in this repetitive exercise that one of the major errors by analysts always occurs.
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Wednesday, April 03, 2013
Bullish on Oil Prices? Two Reasons You Might Change Your Mind / Commodities / Crude Oil
The downturn beginning in 2008 triggered a macroeconomic meltdown that would disrupt all markets, domestic and global. Demand for petroleum diminished just as new technologies were beginning to gush out oil and gas in never-before-seen volumes, creating a perfect storm that would depress prices. Now that oil prices have rebounded, is the worst behind us? In this interview with The Energy Report, Director of Energy Research Marshall Adkins of Raymond James & Associates discusses the events of the last five years and the near-term prospects for energy-related investments.
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Thursday, March 28, 2013
Why Death of Peak Oil Still Won't Mean Cheap Crude Oil Prices / Commodities / Crude Oil
David Zeiler writes: Today (Wednesday) an analyst from Citigroup became the latest lemming to declare the death of peak oil.
In a report entitled "The End is Nigh," Seth Kleinman says a combination of flattening demand and rising supply will cause oil prices to slide slightly by the end of the decade to $80-$90 a barrel.
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Monday, March 11, 2013
Why I Continue to Like Black Gold / Commodities / Crude Oil
George Leong writes: Oil is one of the most volatile of the commodities and fluctuates with the prospects of the global economy and of course the happenings in the Middle East.
Yet, if you really look forward, how can you not like oil given the growth in China and, more importantly, the emerging growth in India?
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Wednesday, March 06, 2013
Peak Oil Is Almost Here and There's No Magic To Counter It / Commodities / Crude Oil
This where we stand, and it's a fairly bleak view: Peak oil is almost here, and nothing new (with the possible but unlikely exception of Iraq) is coming online anytime soon and while the clock is ticking - forward movement on developing renewable energy resources has been sadly inadequate. In the meantime, the idea that shale reservoirs will lead the US to energy independence will soon enough be recognized as unrealistic hype. There are no easy solutions, no viable quick fixes, and no magic fluids. Yet the future isn't all doom and gloom - certain energy technologies do show promise. We had a chance to speak with well known energy expert Dave Summers where we cut through the media noise and take a realistic look at what our energy future holds.
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Tuesday, February 26, 2013
Australia Set for Largest Shale Oil Find of All Time / Commodities / Crude Oil
Dr. Kent Moors writes: Over the past few days, I have released information on what could be the largest shale oil find ever recorded.
It's located in an area of Australia called the Arckaringa Basin and contains as much as 233 billion barrels (or more) of recoverable shale oil.
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Thursday, February 21, 2013
Why China and Saudi Arabia Mean You Should Bet on Higher Crude Oil Prices / Commodities / Crude Oil
Tony Daltorio writes: As Money Morning Global Energy Strategist Dr. Kent Moors pointed out not long ago, the sky is not falling on oil prices despite what the doomsayers believe.
There are two crucial countries that are behind the recent rise in oil prices: China and Saudi Arabia.
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Wednesday, February 20, 2013
The Most Important Chart for Oil Investors to See / Commodities / Crude Oil
Matt Badiali writes: Each new number out of the oil sector is bigger than the last...
As longtime readers know, we're in the middle of an energy revolution. The technology is advancing so quickly, it's like moving from the Model T to the Ferrari in just a few years.
And it's helping the U.S. tap incredible reserves of oil and natural gas. The latest forecasts are out... and they're shocking.