Insider Secrets

Insider Secrets

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

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Energy / Oil Prices

  • 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,…

  • Clock Running Out For Struggling Oil Companies

    Low oil prices are endangering an increasing number of exploration and production companies.According to a new report from Moody’s Investors Service, the oil and gas industry could see the rate of defaults rise over the next year. The companies in danger of going belly up, not surprisingly, are the ones that already have low credit ratings. Moody’s finds that the default rate for oil drillers with a credit rating of B2 or lower could jump from 2.7 percent to 7.4 percent by March 2016.Related: OPEC Struggling To Keep Up The Pace In Oil Price WarMoreover, distressed oil companies make up a…

  • OPEC Struggling To Keep Up The Pace In Oil Price War

     Some market watchers, such as Cornerstone Analytics (CA), have consistently stated that the underestimation of demand, coupled with over-estimation of supply, will mask the growing call on OPEC oil in the second half of this year. CA recently noted that global demand outstripped supply by some 4 million barrels in April . This comes in addition to the mounting evidence that the oil market, via rig count declines, slowing production growth, higher demand and huge API crude inventory declines, is starting to readjust. Be that as it may, Goldman Sachs (GS) seems to believe oil must fall to $45 by…

  • Goldman Sachs Doubling Down On Failed Gas Price Prediction

    Goldman, as well as everyone else, was dead wrong when it predicted that the tumbling gas prices are "unambiguously good" and would unleash a wave of spending unseen since the Lehman collapse - because all those "gas savings" had to go somewhere, right? Instead, what happened was that retail sales disappointed 5 months in a row, and personal spending data that has consistently missed expectations.So now that the plunge in oil, and gas prices, is history, what does Goldman do? Instead of admitting that like every other economist, it was wrong in expecting a surge in spending, it took a…

  • Goldman Sachs Predicting $45 Oil By October

    Could oil prices be in for yet another decline? Oil prices have rebounded with surprising speed in recent weeks, with WTI prices bouncing by more than a third from March lows. There are good reasons for this. Rig counts are down by nearly 1,000 (or nearly 60 percent) since hitting a high in October 2014. Spending on some of the world’s largest projects has been cut by a combined $129 billion, a figure that could balloon to $200 billion by 2016. The spending and drilling contraction is finally leading to some small production declines. Related: The Best Way To Find Major…

  • Oil To Return To $80 With Or Without OPEC Cut Says Iranian Official

    A senior Iranian energy official says he expects oil prices to rise to $80 per barrel late next year even if OPEC doesn’t cut production during its impending meeting. At its last meeting in November, OPEC decided not to cut production in the face of an oil glut and lower prices, caused in large part by producers of oil from US shale, opting instead to keep combined output at 30 million barrels per day in a price war to reclaim market share. Related: $50 Billion Mega Project Could Change South America Forever On May 18, on the sidelines of an energy…

  • This Innovation Will Help U.S. Companies Win The Oil Price War

    Although some US oil companies are struggling with low oil prices, a new wave of innovation is hitting the oil patch, allowing for a significant reduction in drilling costs.A variety of different improvements in production are starting to show up at all levels across the industry from small firms to oil majors. Statoil for example recently noted that it is experimenting with different types of sand and chemicals to improve production. And a number of companies have noted that they are moving from drilling wells one at a time, on an ad hoc basis, to drilling multiple wells at once.…

  • Oil Markets Indifferent To Latest ISIS Victory In Iraq

    A major city in Iraq fell to ISIS militants, marking another milestone in the ongoing war between the US and Iraqi governments on one side, and the extremist group on the other.The Middle East is no stranger to instability. In the past, when violence would erupt in a major oil producing country, such as Iraq, oil prices would respond with a price spike. The threat of supply disruptions would add a risk premium on top of the price of oil, adding a few dollars per barrel. Prices skyrocketed in 2011 after the onset of the Arab Spring, for example, particularly…

  • Oil Prices Will Fall: A Lesson In Gravity

    The oil price collapse is not over yet. It is more likely that the Brent price could fall back into the mid-$50 range than that it will continue to rise toward $70 per barrel.That is because oil prices have risen based on sentiment alone. The fundamentals of supply and demand indicate a dismal reality: oil prices will fall and may fall hard in the near term.Our present situation is like that of the cartoon character Wile E. Coyote. He routinely ran off of a cliff and as long as he didn’t look down, everything was fine. But as soon as…

  • Rally’s Fate Could Hang On EIA Inventory Data Next Week

    Despite the previous week’s potentially bearish chart pattern, July Crude Oil futures managed to trade higher most of the week. The key number which held as support was the previous week’s low at $59.09. A trade through this level would have confirmed the top at $63.62. This would have set into motion a potential correction into $55.54 to $53.63. Last week’s inside move suggests trader indecision. However, it also indicates impending volatility. While the previous week’s move may be indicating the emergence of potentially bearish fundamental news, last week’s inability to follow-through to the upside or downside suggests that investors may…