Daniel Yergin, IHS Vice Chairman and author of ‘The Quest’, looks ahead at the upcoming OPEC meeting and what oil watchers should expect.» Read More
Now that Al Gore has admitted his “mistake,” the U.S. ethanol industry finds itself at the center of what is setting up to be one ugly political spectacle.
Here we go again … oil bulls returned with a vengeance on the first of the month last week as desperate fund managers scrambled in a last ditch effort to salvage what has been a rather dismal year for most of them thus far, writes Stephen Schork.
As first reported by our friend Joshua Schneyer at Reuters, far greater volumes of crude oil than previously reported are flowing from the U.S. Midwest (PADD II) into the epicenter of the U.S. refinery market in the Gulf Coast (PADD III). This is troubling.
Yesterday (Wednesday), spot Nymex gasoline for January delivery surged by 11.4 cents a gallon (+5.2%) on an apparent physical squeeze in the Northeast. The contract was lower past midnight EST, but as soon as it went positive (around 4am ET) the rally was on.
With the implicit volatility in futures contracts, market participants turn to options contracts as a way to hedge risk.
On Wednesday of last week, the Bureau of Economic Analysis released its latest personal income and expenditure figures. The former came in at 0.5% for October, above analyst expectations of a 0.4% increase, while expenditure, or spending, came in at 0.4%, slightly below analyst expectations of a 0.5% increase, but much better than the 0.2% increase seen in September.
In last Wednesday’s edition of The Schork Report, we expressed our disagreement with the 2.00 MMbbl draw in crude inventories expected by analysts from the DOE report.
As U.S. energy markets approach the Thanksgiving holiday this Thursday, liquidity will begin to evaporate. In the meantime crude oil bulls in New York appear to be caught in a virtual purgatory between congestion from October around 82.87 to 83.44 and support out of September from 78.90 to 77.81.
Legendary oil and natural gas executive T. Boone Pickens outlines his energy plan, which includes an expansion of renewables in power generation, and advancing the use of domestic fuels — most logically natural gas — for transportation , which accounts for two-thirds of our oil use.
The last time we discussed the domestic producer price index (PPI) and consumer price index (CPI) we stated that “Consumers aren’t feeling the pain… yet.” The CPI for September was flat, whereas analysts were looking for a 0.1% increase and we were specifically concerned that the CPI of food rose just 0.32%, stating “we do not expect this to last.”
What is most peculiar given that California is one of the largest crude oil producers in the Lower 48 (second only to Texas) is that employment in the Mining/Logging sector (which includes oil and gas extraction) is down 1½%. Conversely, this sector in Texas is up by 51%!
Whereas it took the bulls 15 sessions to rally the market for December oil 10.2%, it took only a quarter of that time for them to give it all back. As such, bulls now find themselves having to defend $80 when just a week ago $90 looked like a slam-dunk.
Since the U.S. Fed announced its plan to purchase $600 billion of Treasury Bonds (QE2) two weeks ago, the U.S. dollar has rallied 5.3% against the euro. In turn, after a slight decoupling, Nymex crude oil has plunged 7.4% (peak-to-trough) over the last four sessions.
Move over, Mr. Obama. Donald Trump is “mulling over” whether to run for president.
Touting his energy plan to get America off foreign oil, financier T. Boone Pickens told CNBC Wednesday that the U.S. is importing oil from its "enemies."
Despite reports, U.S. gas producers have not given up on drilling. Thus, whether we are talking about anecdotes from the Fed or earnings statements from one of the largest gas producers in U.S., the bottom line is clear...
The EIA released its latest Short Term Energy Outlook (STEO), a forecast of global supply, demand and prices. There is enough data for several reports, but key takeaways included WTI prices, which the EIA forecasts will average "about $83" this winter, before rising to $87 by Q4 2011. Did this take the wind out of the bulls’ sails?
Much ado was made in the market yesterday regarding Tuesday’s release of The Conference Board’s Global Economic Outlook. Of particular interest, especially to Yankeephobes from the schadenfreude swamps of the Left was the finding that China may overtake the U.S. as the world’s largest economy by 2012… with may being the key auxiliary verb.
According to the monthly numbers from the EIA, underground stores of working gas increased by a staggering 1.079 Tcf through the first phase (April to June) of this season. Based on the variation in the time series we have seen since the start of the decade, we would have expected an injection of no more than 1.064 Tcf.
Yesterday’s issue of The Schork Report stated that “Pundits are now beginning to raise the specter of ‘decoupling,’ where a higher dollar moves in line with commodity prices. We’re not falling for it.” Here's why.