Oil rig counts in the U.S. rose for the first time since December 2014 last week, which could impact year-end price targets.» Read More
Saudi Arabia is in “active talks” with European oil companies to meet the production shortfall left by Libya, the clearest indication to date that the leader of the Opec oil cartel is about to boost supplies to stop further rises in the oil price.
With energy the one bright spot in an otherwise bleak market, should you get in too? Or is this trade about to reverse?
Per yesterday’s (Tuesday's) update from the DOE, retail gasoline prices in the U.S. hit another post bubble high, $3.189. In other words, U.S. consumers are now paying the highest price for gasoline since October 2008.
The mass protests in Bahrain will make the country stronger and not lead to the fall of the ruling royal family, the boss of Bahrain's sovereign wealth fund has told CNBC.
Muammer Gaddafi’s family has built up vast business interests in sectors ranging from oil to hotels during his 41-year rule, giving it a hold over large swathes of Libya’s economy, according to US diplomatic cables and governance groups, reports the Financial Times.
The administration is searching for an acceptable blend of government support and a pro business environment because voters demand better jobs without compromising the nation’s balance sheet. The answer may be in Tripoli.
The quote above demonstrates how extreme tensions have become regarding Libya. Warplanes are said to be strafing protestors in Tripoli, the capital, while Benghazi, the second largest city, is said to be in the hands of the insurgency.
With the recent turmoil across North Africa and the Gulf, investors are now becoming increasingly concerned that the ‘political contagion,’ as the wave of upheaval has come to be known, may flow over into Saudi Arabia as well.
Pundits have recently been talking about stocks at Cushing, OK and the effects of the Keystone pipeline. They have also been talking about the widening front month spread, which recently crossed below the -$4.00 barrier for the first time since May 2010. However, there is a less discussed effect of Cushing that takes place much further along the curve, writes Stephen Schork.
Crude oil prices in New York jumped 2% in 30 minutes after reports broke regarding Iran’s intent to send two naval gunboats through the Suez Canal en route to Syria, writes Stephen Schork.
As noted in recent issue of The Schork Report, the movement of crude oil in the U.S. in the fourth and first quarters exhibit distinct patterns at the refinery epicenter in the GoM (PADD III). At the end of the fourth quarter inventories are usually purged in accordance with end-of-year tax reporting purposes. This flush typically produces a considerable draw in the month of December, writes Stephen Schork.
Last week’s WikiLeak’s dump regarding oil production estimates for Saudi Arabia reintroduced the notion of peak oil to the popular discussion. By peak oil we are talking about the high-water mark, as assumed from the Hubbert curve, of global oil production, writes Stephen Schork.
Last week the EIA released its latest Short Term Energy Outlook. The big ticket numbers include WTI averaging $93 per barrel in 2011, gasoline prices at the pump averaging $3.15, and household expenditures on electricity remaining flat. Our focus today is on natural gas, with Henry Hub prices expected to average $4.16 per MMBtu in 2011, $0.22 below last year’s average, writes Stephen Schork.
We are becoming wary of connecting forecasts with market reactions. Consider that since the start of December, the delivery has exceeded analyst expectations for seven out of the ten reports. Yet on the day of the release, prices have fallen for eight out of the last ten weeks, writes Stephen Schork.
Per the latest WikiLeaks dump, Sadad al-Husseini, a former geologist for the Saudi state-owned oil company, Aramco, stated in diplomatic cables dated between 2007 and 2009, that the oil kingdom may have overstated its oil reserves by as much as 40 percent.
Yesterday, the Chinese government announced its third interest rate hike since October. The rate on the 1-year lending rate from the Bank of China will increase 25 bps to 6.06%.
Yesterday’s issue of The Schork Report stated that during last week’s trading “the bulls failed to hit [natty front month’s 50 day moving average of 4.373] on Friday which could lead to a technical sell-off this week.” Yet we were still surprised to see the severity of yesterday’s ~5.00% drop to 4.104, writes Stephen Schork.
Since the start of the winter, the spread between the Nymex Henry Hub natural gas futures contract for March 2011 delivery and the April contract has morphed from a premium (backwardation) of 0.9%, to a discount (contango) of -0.7% as of last Friday. The spread has been yo-yoing around unchanged all winter long.
If we adjust the price for the rise in the cost of living, then a 1966 gallon of gasoline should be worth around $1.00 in 2010.
Natural gas production in the Lower 48 U.S. has now increased in 9 of the first 11 months of 2010 per the government’s latest numbers, EIA-914, writes Stephen Schork.