Category: Crude Oil
The analysis published under this category are as follows.Saturday, October 06, 2012
Syrian Civil War Impact On Crude Oil / Commodities / Crude Oil
There is a popular belief in the Middle East that Washington's foreign policy, particularly as it relates to this precarious region, is largely driven by America's dependency on, and insatiable appetite for Arab oil. One can make a good argument for that.
Had Syria been a major oil producing country chances are the US would have already dispatched military forces to impose a pax Americana and to put a stop to the horrific fighting that has been slowly, but without any doubt, ripping Syria apart and dismantling the infrastructures that make the Syrian state what it is today. Even if the war was to end today it would take years for Syria to return to its pre-war position from an economic and military perspective.
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Friday, October 05, 2012
Crude Oil Fundamentals And Overpriced Oil / Commodities / Crude Oil
FUNDAMENTALS?
After another "severe correction" on 3 October, another magnificent dead tiger bounce in oil prices as traders decided the correction had been "overdone". The Syrian crisis is looking to spill over the Middle East, Iran bombing is back on the menu, US gasoline supplies are down a little due to a refinery fire - but above all the oil trading and financial community, and Big Energy need overpriced oil.
Wednesday, October 03, 2012
Why Crude Oil Prices Are Entering a "New Normal" / Commodities / Crude Oil
Dr. Kent Moors writes: One of the things I have learned from almost four decades of doing this is that oil and gas specialists know a great deal about what they do for a living.
However, few of these specialists really understand enough about what the person to the right or left of them does. This tends to breed tunnel vision.
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Monday, October 01, 2012
Crude Oil New $75 Floor Price / Commodities / Crude Oil
Oil analysts, pundits and commentators are getting a hold on the rising threat of what is called "severe correction" hitting oil markets. The 2008-2009 sequence where Nymex prices crashed from a peak around $147 a barrel to about $40 are relatively fresh in the mind. The rebound was also dramatic, pushing prices through 2010 back over the 100-dollar mark into low triple digits by Q1 2011.
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Sunday, September 30, 2012
Islamic Revolution in Saudi Arabia Would Send Crude Oil to $300 / Commodities / Crude Oil
Marin Katusa, Casey Research writes: There is little that would rock the oil world more than a revolution in Saudi Arabia.
But with a coming leadership crisis, it is becoming all too likely.
Saudi is facing major economic challenges as dramatic increases in social spending and domestic fuel consumption eat through the kingdom's all-important oil revenues.
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Sunday, September 30, 2012
Are Falling Crude Oil Prices Predicting A Stock Market Fall? / Commodities / Crude Oil
When the economy slowed in the summer of 2010 and the Fed launched QE2, commodity prices took off like a SpaceX rocket. The price of crude oil reversed to the upside along with the stock market, surging up 64%, from $70 a barrel to $114 a barrel eight months later in April, 2011.
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Sunday, September 30, 2012
Crude Oil And The Dead Cat Bounce / Commodities / Crude Oil
FUNDAMENTALS
What crisis? Nymex and ICE oil price movement shows how oil prices can be moved anywhere as long as its up, except of course when its down, where fundamentals point with stubborn determination.
Recent weeks, especially the last show that sometimes the oil bulls can get dispirited and run out of news support, and be forced to take a cut in their boundless optimism which says we really can have $130 a barrel for Brent and $125 for WTI like Goldman Sachs tells us we can - this year, in 2012. When the markets take an especially hard hit, like the recent loss of $10 off the barrel price, the dead cat bounce can take the shape of a Goldman tiger bounce - paper tiger of course.
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Thursday, September 27, 2012
QE3, SPR Release and Gasoline Prices / Commodities / Crude Oil
With crude oil accounting for 65% of the price of gasoline, there's typically a high correlation between the price of oil and gasoline. However, there's been a disconnect between the two for the most part of this year. The main reason for the disconnect is the divergence of supply market fundamentals.
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Wednesday, September 26, 2012
Crude Oil Prices are Headed Higher / Commodities / Crude Oil
Dr. Kent Moors writes: My latest trip to London may have centered on the briefings I gave on Iranian oil sanctions, but I also did a number of media appearances.
As I have mentioned before, questions from European interviewers are generally more knowledgeable and to the point than in the states. This may be because places like London are much closer to the events directly affecting oil prices.
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Tuesday, September 25, 2012
Oil Shocks From The Lost Ark / Politics / Crude Oil
TIME WAS
On Sept 24, 2012 Bloomberg ran an article probably written way back in the 20th century - perhaps 1974 - but strangely lost in transmission to Bloomberg's editorial offices. For reasons best known to Bloomberg, it decided to publish this article unchanged with all its original, laughable errors.
The article by Jeff Rubin starts by telling us that "for most of the last century" (probably not the 19thC), cheap oil powered global economic growth. Rubin adds that when oil prices doubled, and then doubled again, this "permanently shackles the growth potential of the world’s economies". He adeptly forgot to mention that when oil prices halved, and halved again little or nothing happens to un-shackling economic growth.
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Thursday, September 20, 2012
You Can Drill All You Want, Oil Prices Are Still Headed Higher / Commodities / Crude Oil
Dr. Kent Moors writes: Today I want to focus again on oil prices. It seems that some TV pundits have never heard (with apologies to Alexander Pope) that a little knowledge is a dangerous thing.
Some people on Wall Street believe that by scaring the individual investor they stand to make a greater profit for themselves.
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Wednesday, September 19, 2012
Why Bernanke Refuses to Let Crude Oil Prices Fall / Commodities / Crude Oil
A prominent symptom of the final deflationary phase of the 60-year/120-year cycle scheduled to bottom in 2014 is, ironically, asset price inflation. While this may seem contradictory at first glance, it makes perfect sense after closer scrutiny. Asset price inflation is the central bank’s response to the destructive undercurrent of economic deflation. It requires a decisive action, as the recent QE3 initiative showed.Read full article... Read full article...
Tuesday, September 18, 2012
Arab Spring and Crude Oil Prices / Commodities / Crude Oil
Crude oil prices hit a four-month high this week on the back of rising tensions in the Middle East and North Africa and the unfortunate murder of the U.S. ambassador to Libya. Added impetus on the upside was given to oil by the announcement of more money printing (QE3) by the Federal Reserve which said it would launch an open-ended commitment to purchase $40 billion of mortgage-backed securities monthly.
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Sunday, September 16, 2012
The Next Recession Will Be Triggered By Crude Oil / Commodities / Crude Oil
I was confident that the Fed had already begun printing. That seemed quite evident by the overall action in the commodity markets, the dollar, and the fact that stocks were unable to correct in the normal timing band for a daily cycle low. However, I didn’t really expect Ben would come out and publicly admit it. That one took me by surprise Thursday. I guess Bernanke wants to get full value for his attack on the dollar and make sure that markets are rising into the election.
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Wednesday, September 05, 2012
U.S. Strategic Petroleum Reserves: The New Monetary Tool? / Commodities / Crude Oil
Oil and commodities are rising with renewed talk of buying bonds in Europe and future stimulus from the Federal Reserve in the United States. The problem of course is that higher oil prices partially offsets some of the benefits of these Monetary Initiatives by leaders (It is debatable how effective these policies actually are in solving the real issues and problems).
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Friday, August 31, 2012
The Real Cause of High Oil Prices / Commodities / Crude Oil
Nowadays the energy picture is confusing at best as the more information we are shown the more blurred our vision seems to become. Mixed messages, poor reporting and a media hungry to sensationalize anything it thinks can grab a headline have led to many wondering what the true energy situation is. We hear numerous reports on how the shale revolution will transform the energy sector, why alternatives are just around the corner, why advances in oilfield extraction techniques and new finds will help to lower oil prices. Yet no sooner have we read these rosy reports than we are bombarded with negative news on the Middle East, on why alternatives will never compete, on peak oil and declining oil production.
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Wednesday, August 29, 2012
Uncovering the Real Price of Peak Oil / Commodities / Crude Oil
Doug Casey, chairman of Casey Research and expert on crisis investing, is on the search for real wealth – not investments in companies that push around paper. In this exclusive interview with The Energy Report, Casey shares his pragmatic take on what's next for oil, gas, and nuclear power.
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Tuesday, August 28, 2012
Ignore the Crude Oil 40 Doom-and-Gloom Crowd / Commodities / Crude Oil
Dr. Kent Moors writes: I just returned from a week down South with a few of my energy clients. It's good to get my hands dirty and remind myself firsthand what is going on at the project level of some of the country's top energy companies.
But when I returned home this weekend, I made the mistake of flicking on the television and opening the newspaper.
I can't believe that the pundits are now predicting that oil will fall to $40 a barrel. They also are projecting that the entire natural gas sector is going to collapse.
Thursday, August 23, 2012
The Most Important Economic Event of Your Lifetime Is Now Underway / Commodities / Crude Oil
Porter Stansberry writes: You're not hearing about it in the mainstream press, but I believe the most important economic event of our lifetimes is now underway...
This event has been spurred on by a widespread belief that oil and natural-gas resources were in a permanent decline (the concept known as "Peak Oil").
Thursday, August 23, 2012
Unsettling Development for Washington, Venezuela Ramps Up China Oil Exports / Politics / Crude Oil
The biggest geostrategic change of the past decade overlooked by Washington policy wonks in their fixation on their self-proclaimed "war on terror" is that Latin America has been throwing off the shackles of the Monroe Doctrine.
These ignored developments may well soon refocus Washington's attention on the Southern Hemisphere, as Venezuela's President Hugo Chavez reorients his country's to China.