Tag Archives: energy

Oil Price War – Saudis up Ante Cutting Prices Another $2.00 Per Gallon

The State owned company Saudi Aramco announced that it is cutting prices to a record low $2.00 per barrel discount to Asia, Europe and all grades of crude to US refineries. To reinforce Saudi Arabia’s vow to crush US oil shale producers, Saudi prince, Turki Al-Faisal said: “Saudi Arabia won’t give up oil market share at this time for anybody.”Continue Reading

URGENT-Check Your Energy Portfolio Now!

The OPEC decision not to cut oil production is a watershed event that will change the energy industry for years to come. OPEC Secretary General, Abdalla El Badri stated: “We will produce 30 million barrels a day for the next 6 months and we will watch to see how the market behaves.” Energy Minister, Suhail Al Mazrovei said: “Newcomers to the market who have the highest costs and created the glut should be the ones to determine prices.”Continue Reading

Why are Oil Prices Falling in the Midst of Mid-East Chaos?

The oil market is one of the most illusive and difficult markets to understand. In past decades it was simple. OPEC controlled prices. When prices got too low, they cut production and prices rose. Now, however, we no longer have a single group in charge. The market is fraught with trends and counter trends that create confusion and places traders on edge. Just about a month ago, West Texas Intermediate (WTI), the US benchmark, was trading at $106-$107 per barrel. This Friday prices have dropped to $93.65 per barrel for October delivery. There are rumors of a price drop to $70-$80 per barrel.Continue Reading

Two Markets in the Cross Hairs

This week the energy market and the S & P are in focus. Taking the energy market first we saw a technical breakout on the September futures on July 5th, with a close of $103.05 per barrel. This came after a long sideways movement going back to Feb 14th when the close came in at $99.13 per barrel. Given a rather sluggish economy you are wondering what caused this spike. To begin with we must recognize that the oil market is at best mysterious. We have production, exports and imports going on simultaneously in every major country from North America, to Europe and Asia. For this reason it is difficult to pinpoint a single factor that triggered the rise.Continue Reading