The Saudi King announced today a $400 Billion investment in the government run oil industry in hopes of restarting the economy during economic recession. Investors around the world should like this infusion of cash that will do much to improve economic vitality in the Middle East and should keep oil prices low for years to come. Read more…
With oil at $62 a barrel at the close of the hurricane season and the winter slowdown, this winter appears like it will be the perfect time to move back into oil. Production cuts from OPEC have done little to stop the fall. Even after the cuts the US is showing huge inventory gains and gas has now reached the lower $2 per gallon region. Read more…
Hurricanes are known for pushing up the price of gasoline while dropping the cost per barrel of oil. An interesting thing always happens after large hurricanes come from the gulf, the price of oil drops while the price of gasoline always rises. There are a few reasons as to why the prices do this. Read more…
It was only a matter of time before oil touched its strong support near the $110 level and rebounded quickly. Stock traders were taken off guard as the commodity jumped $5 per barrel on tensions between Russia and Georgia and capitalizing traders pushed prices higher. If oil prices continue this what seems like never ending climb, the stock market is due for a tailspin. With the Dow rushing towards 11700 on what seemed like thin news events, the oil market is livening up and proving that it will be a player in today’s stock market. Read more…
Since the beginning of June I’ve believed that oil prices would soon correct to the $110 area. The prior two weeks have told me that no high is high enough and that the price of oil will rage on through the fundamentals in Iran to the falling dollar. But as it was reported last month, the amount of short sellers is finally outnumbering the buyers. This should stand to say that oil companies may be actually shorting the price of oil to hedge themselves against falling prices. Through futures options and other strategies, oil companies are able to hedge their production amounts against current prices via options and still earn the same amount per barrel whether oil is $150 or $50. Read more…
Commodities prices tumbled today which is generally received as a very good economic indicator especially when the word recession gets thrown around. Corn prices touched $8 a bushel briefly but are back down to modestly to $7.46 after falling the daily limit. Fears of a rainy summer and minimal crop have disappeared, now it looks like this years crop might be near normal levels. Read more…
China released news today that it planned on raising its nationalized gas prices by 18 percent, perfect news for only oil company struggling with maximizing profits due to these set prices: Petrochina. Petrochina is the world’s largest oil company, it’s a nationalized product of China and at its highs had a market value of nearly $1 Trillion. This thing is huge. Read more…
News abound of a 300,000 increase in the daily production of crude oil by Saudi Arabia and the decision by Congress to cut supply of 70,000 barrels per day into the US strategic oil reserve certainly made a few people happy but the end result is literally and figuratively a drop in the bucket.
An increase in supply by 370,000 barrels a day will have little to no impact on the current price of oil for a variety of reasons. First and foremost is that many countries enjoy the ability to print money. Even better is that the United States can print US dollars to use immediately for oil, other countries have to exchange their home currency first for dollars then buy crude oil unless going through the few nations that accept other currencies. Second is that China’s growth has created a consumerist China, no doubt that the rising middle class can afford new luxuries including personal cars and other energy intensive products. Read more…
The mainstream media has drawn a rather interesting correlation between the price of spot bullion and the price of oil. Not a day goes by that the price of oil is directly correlated between gold and silver prices. In fact, this scenario could not be further from the truth.
While bullion and oil are very speculative investments and do correspond in price with the levels of inflation, they are not directly linked. Oil has a much smaller supply than that of bullion. The daily supplies of oil and other commodities are based on the amount produced on a day to day basis, as no real reserve of ready to use oil is traded. Remember, oil is traded with futures, bullion can be traded by means of a futures platform or a spot market. Read more…
Trading oil often requires a high level trading account in either the futures market or with a commodity trading firm. There are a few stock sectors that move in reaction to oil prices. Trading these stocks, in many cases, is just as good as trading oil itself. Read more…
The recent pullback in commodities such as gold, silver and oil really hurt the industries share prices. Gold stocks were down the most just this last week after metals prices lost more than 10%. Silver was down from its highs to 16.85 an ounce, which I believe to be the cheapest we’re going to see for a long while. Read more…
Oil is the most in-demand commodity today. Each and every day, 82 million barrels of oil is pumped and virtually all of it finds a buyer on the same day. About 80million barrels is normal crude oil, traded on the markets at the current prices. The other 2 million is a mix of heavy Saudi Crudes that have very few uses in industry. Read more…
At the beginning of this week oil prices have been near their record but the price of gas has continued to fall for the second week in a row now. This is very uncharacteristic of these 2 to move in opposite directions like this and yet the price of gas will more than likely continue to decline even further. Read more…
Today, oil prices rose to the highest price that anyone has seen in the past 33 weeks. This happened as a terrorist plot was discovered and foiled. The plan was aimed to ruin many important petroleum facilities. Of course, had this happened this would have interrupted the flow of oil throughout the world. With this event, gas prices could rise to close to $3 per gallon. This was the record was set after the Gulf of Mexico was hit by Hurricane Katrina. Read more…
The largest oil field in the USA has been shut down and this will bring much higher oil prices. BP is talking about fixing the majority of the pipeline and it may take months to repair the problem. With this problem comes good deeds to investors and these oil ETF’s will shine bright until the world gets ahold of this problem. Read more…
Oil is one of the most vital commodities known to man. Powering essential items such as cars, planes and trains. It produces items such as plastic and petroleum jelly. It represents an intrinsic part of modern life. Read more…
Oil falls (73.54) for the second day! Not really big drops just enough to talk about to the people to feel good. Usually a cents compared to the dollar gains, but today it fell 1.76 today. With this good news we get the bad news as the second Atlantic tropical storm is forming. Hmmmm I wonder where this is going 80 or 90 per barrel of oil. Read more…
Oil has hit new highs as it continues to climb through the loom and gloom of world events. Currently the price is above $75 and it seems the markets are going to keep it going up, up, and away if they can have their way. Read more…
Both the Dow and the NASDAQ took a hit today as many investors are very confused about what is going on with the economy after the job report fell, but this may put a slow down on the rate hike. Read more…
Many of us went into the week thinking the Dow would hit records along with other records. Then the Federal Reserve raised interest rates to 5% and then leaving us with the impression that it may go up again the next meeting, so the Dow was riding on a thin string for this week. Read more…
Chevron (CVX - 61.02) is reporting a $4 billion dollar first quarter profit, Exxon Mobil (XOM - 63.08) $8.4 billion, and ConocoPhillips (COP - 66.90 ) $3.29 billion. This past week these companies have been releasing their first quarter reports and many people are starting to wonder about these companies and the high oil (72)prices. I imagine the public and several politicians will be putting pressure on these companies looking for answers. Read more…
People are seeing signs that the fed is easing up on interest rates and this has sent oil past $71 a barrel and analyst are looking for oil to soar past $80. The energy markets will be seeing all time profits again this year if the oil continues to sky rocket. Where can we put our little money to get in on this upward trend? Read more…