Insider Secrets

Insider Secrets

Learn how the PROs are making money from the oil and energy market.

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Energy

  • What Does Exxon Know That We Don’t?

    Forecasts from the IEA and Goldman Sachs this week are trying to say that crude barrels are still overpriced – but the market isn’t listening. I’ve been convinced that crude prices above $60 are counterproductive as Goldman said in their recent note – but other factors are continuing to help push prices higher. Let’s take a closer look and see what’s going on – and what might go on in the near future. Some short-term fundamentals continue to push traders into long positions in oil. I’ve been among the first to point out the large outflows of capital from just…

  • Oil Looks Set to Go Lower Again, But This Refiner is Still A Good Buy

    Oil, or rather the price of WTI, is at a critical level. Lower U.S. production numbers this week have given the black stuff a boost and pushed it back to challenge the resistance level just above $60 for the third time since falling below the mark in December of last year. It is an old adage of dealers that the third test of a chart point is the most important. It gives the best chance of a breakout, but if the resistance or support holds it usually signals a fairly sharp move in the opposite direction. (Click to enlarge)In other…

  • Major Offshore Potential In This Tiny Nation

    Introduction The North Sea has long been in decline. An era in which the British Islands fueled Europe’s oil and gas needs, which has lasted for over a generation, is slowly coming to a close. But while Scotland (and thus, the UK) has been the base for North Sea oil development, Ireland has largely been left out of the hydrocarbon bonanza. Having never developed its own oil and gas resources, Ireland has been a sort of forgotten step child to its larger neighbor just across the Irish Sea. However, that could soon change. A recent announcement about the large potential…

  • Expect Back And Forth Price Action Until June 5th

    July Crude Oil futures have drifted sideways-to-lower since its May 6 top at $63.62 despite three consecutive weekly drawdowns in inventory. Drawdowns have even taken place four out of the last ten weeks. Furthermore, the number of producing U.S. rigs has also declined for several months although lately at a slower pace than earlier in the year. (Click to enlarge)Inventory drawdowns and rig reductions, on paper are bullish indicators and should have been supportive to prices. Instead, July Crude Oil futures have weakened since May 6, dropping from $63.62 to $57.93 in nine sessions. A potentially bearish closing price reversal top…

  • This Week In Energy: Petrobras Scandal Could Undermine Brazil’s Economy

    Petrobras has tried hard to put its massive scandal behind it. After a corruption scheme involving kickbacks was uncovered last year, the Brazilian oil giant has buckled under the weight of the political blowback. The financial tally relating to the scandal seemed to rise by the day. In recent weeks however, the company hoped to put the worst of it in the past, offering up more concrete figures on its losses ($17 billion) to assuage the concerns of its creditors and shareholders. The financial markets have started to come to terms with the scandal, and Petrobras appears to be on…

  • China Gaining Influence In This Key Emerging Coal Market

    Another bank, Credit Agricole, voted this week to stop financing coal mining. Suggesting this is becoming a space with little competition for investment -- and perhaps therefore considerable opportunity.Like the newly opening coal fields of Kenya. Where this week the government awarded two new exploration blocks -- just the second and third ever offered in the country.Kenya's energy and petroleum ministry said Tuesday it has chosen developers for the so-called A and B blocks of the Mui Basin, in the country's eastern region.Related: China Builds Influence In Latin America As Commodity Prices TankThe two coal licenses will go to a consortium…

  • Why Oil’s Rally Is Over

    A lot of people have got very excited as the price of WTI has bounced back from the lows reached a few months ago. If oil fails to break and hold above $62 this time around, however, their enthusiasm could well be misplaced, as the fundamental factors that caused the price decline in the first instance are still in place. That, combined with the technical importance of this challenge of the resistance, makes a drop back below $50 look more likely than a continued rally. When short-term technical indicators and long-term fundamentals both suggest a move in the same direction,…

  • Drilling Efficiency To Keep Oil Prices Low

    Economics 101 tells us that prices in a free market are set by the interaction of supply and demand. The world oil markets have gotten a graphic lesson in that truth over the last year, as the dramatic surge in US oil production has met stagnant demand. This, in turn, has pushed down spot prices by nearly half. The recent uptick in oil prices, however, has buoyed hopes among market watchers that a strong oil price rally is in order. Unfortunately economics is working against these investors. Related: $50 Billion Mega Project Could Change South America Forever Gasoline demand is starting…

  • This LNG Player Could Leave Lumbering Competitors In The Dust

    US companies have been scrambling over the past few years to build new export terminals for liquefied natural gas (LNG). But just as the first is nearing completion, one company wants to forgo the onshore liquefaction concept altogether and move offshore. The US is nearing the point when it will start exporting natural gas, which Bloomberg says will “change the global LNG market forever.” US LNG could undermine the practice – particularly in Asia – where supply deals are sealed with long-term contracts linked to the price of oil. More LNG shipped abroad will bring down LNG prices in Europe…

  • New Silk Road Could Change Global Economics Forever

     Part 1: The New Silk Road Beginning with the marvelous tales of Marco Polo’s travels across Eurasia to China, the Silk Road has never ceased to entrance the world. Now, the ancient cities of Samarkand, Baku, Tashkent, and Bukhara are once again firing the world’s imagination.China is building the world’s greatest economic development and construction project ever undertaken: The New Silk Road. The project aims at no less than a revolutionary change in the economic map of the world. It is also seen by many as the first shot in a battle between east and west for dominance in Eurasia.The…