Insider Secrets

Insider Secrets

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

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Energy / Oil Prices

  • Cameroon Ramping Up Oil Production As Prices Moving Down

    For the first time since April of this year, the international price of oil has dipped below $50 a barrel. This lower price environment, created by growth in U.S. output and Saudi Arabia's unwillingness to cut production, has forced many oil exporting countries to scale back production.But not Cameroon.For the first time since 2002, the West-Central African country has increased oil production to over 100,000 barrels a day – a 17 percent increase over 2014 levels. What's more, the World Bank predicts Cameroon will produce more than 150,000 barrels a day next year, for a total of 57 million barrels in…

  • Top Factors Undermining Any Oil Price Recovery

    Global oil prices have returned to a state of flux. This is hardly news to any who follow the oil markets closely and yet prices continue to drive international headlines. While oil prices are notoriously difficult to predict, it has failed to deter the speculators. There are those warning that the latest dip is a precursor for $40 a barrel, a catastrophe for oil markets in some minds. On the other end of the spectrum are the optimists betting on a return to $100 by 2020. The World Bank has taken a typically middle-of-the-road approach, with forecasts of $57 a…

  • Pessimism Amongst Oil Traders Reaches 5 Year High

    With oil prices hitting their lowest levels since March, a renewed sense of gloom has washed over oil markets, and with it, fears over deeper trouble for U.S. shale companies are spreading. After hitting $43 per barrel in March, oil prices jumped to $60 per barrel by May and then stayed around that level for almost two months, raising confidence that a rebound was underway, albeit at a slow pace. A few companies, including EOG Resources, Pioneer Resources, Occidental Petroleum, and Diamondback Energy, suggested that they were considering stepping up rig counts and drilling activity this year on the heels…

  • Has The E&P Industry Lost Touch With Reality?

    The U.S. rig count increased by 19 this week as oil prices dropped below $48 per barrel–the latest sign that the E&P industry is out of touch with reality.Getty Images from The New York Times (July 26, 2015) The last time the rig count increased this much was the week ending August 8, 2014 when WTI was $98 and Brent was $103 per barrel. What are they thinking? In fairness, the contracts to add more rigs were probably signed in May and June when WTI prices were around $60 per barrel (Figure 1) and some felt that a bottom had…

  • 9 Reasons Why We Should Be More Worried About Low Oil Prices

    Why are commodity prices, including oil prices, lagging? Ultimately, the question comes back to, “Why isn’t the world economy making very many of the end products that use these commodities?” If workers were getting rich enough to buy new homes and cars, demand for these products would be raising the prices of commodities used to build and operate cars, including the price of oil. If governments were rich enough to build an increasing number of roads and more public housing, there would be demand for the commodities used to build roads and public housing.It looks to me as though we…

  • Someone Will Be Back For This Company, So Get In Now

    The theme of commodity deflation is really becoming the overwhelming signpost for investors today and is getting almost entirely overlooked. In the past week, we’ve seen 5 year lows in Copper and Gold and the beginnings of the ‘double-dip’ recession in oil that I have been predicting for weeks.The reason you must be aware of the completeness of the current commodity meltdown is one of historical precedent and economic laws. One important precedent is that commodity deflation has always been accompanied by a concurrent disaster in other capital markets; whether we call this the retreat from ‘risk-on’, or a real…

  • Downtrend Too Strong To Pick A Bottom For Now

    September Crude Oil futures finished the week sharply lower and at a new low for the year. Let’s look at the numbers.Oil lost a little over 3.0% on Wednesday after the release of bearish weekly inventory figures. It has closed lower thirteen times in July and is rapidly approaching a 25% decline for the month. Buyers didn’t even show up when the market tested the previous contract low. This is a sign that the funds aren’t afraid to sell weakness and that buyers are pulling bids.According to data from the U.S. Energy Information Administration, weekly U.S. crude oil inventories surprisingly…

  • Forget Media Hype. Oil Set To Rebound

    Despite oil prices being somewhat depressed by the hype surrounding the Iran deal (which has repeatedly been debunked as not affecting supply until, at the earliest, the first quarter of next year) expect another large oil inventory draw to come, starting off with the API inventory figures published on Tuesday followed by Wednesday’s EIA report, which I expect to not only show an inventory draw of over 4 million barrels again but continued declines in production. This is, in part, tied to growing demand in the U.S., but there are several other reasons we should discuss. With the Iran deal,…

  • This Is Why Californians Pay More For Their Gasoline?

    The price of gasoline in Southern California is the highest in the nation, in large part because an Exxon Mobil Corp. refinery in Torrance has been out of commission since an explosion there in February, and the state’s environmental regulations are hampering the company’s efforts to quickly get it back to full production. The refinery is now operating at under 20 percent of its potential, mostly because the explosion damaged its two pollution control units, according to Mohsen Nazemi, the deputy executive officer for engineering and compliance of California’s Sourth Coast Air Quality Management District. ExxonMobil has sought permission to…

  • Mixed Signals Have Oil Traders On Edge

    Last week’s report ended with a call for a sideways trade with the crude oil market holding between $55.33 and $50.95. September Crude Oil futures traders accommodated by posting a range of $53.94 to $51.44. The price action formed an inside move which typically means trader indecision. Trader indecision may have been caused by a technically oversold market, or the lack of fresh news. Coming off the previous week’s Greek bailout vote and the crash in China’s equity markets, this week’s news was pretty tame. Iran signed a nuclear deal with several western powers, but that seems to have been…

Martin tiller