Insider Secrets

Insider Secrets

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

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Article Archive

  • Who Would Be The Best Presidential Candidate For Energy Companies?

    As the 2016 presidential race starts to heat up it is time to take a look at the remaining serious candidates and what each one might mean for energy policies and energy companies in the U.S. While a lot can happen in the next couple of months, the current leaders for the Republican Party are Donald Trump, Ted Cruz, and Marco Rubio. For the Democrats, the race will likely come down to a long brawl between Hillary Clinton and Bernie Sanders. As a bonus, it’s also worth looking at what Michael Bloomberg might do for energy if he enters the…

  • In Spite Of Oil Price Slump, Speculators Drive Bets To Record Levels

    The signals from major investors, oil companies, and OPEC have clouded the picture for where oil prices will go next. Oil prices have crashed from the heights of $100+ per barrel just 18 months ago, down to the lows of $30 per barrel. But what happens next? There is no shortage of clues, but they all add up to a fuzzy outlooks, leaving a very confused assessment of the state of play in the oil markets. On the bullish side of things, the current oil price level is untenable, something that has been true for some time. An estimated 3.4…

  • Iran Signs Oil Deal With Total, Deal Done In Euros

    As Airbus and Peugeot finally return to post-sanctions Iran, the trade-off is Iranian oil, with French Total SA taking the plunge in an agreement to buy up to 200,000 barrels per day of Iranian crude--but the catch is that sales will be in euros. Deals signed just over a week ago when Iranian President Hassan Rouhani met his French counterpart, Francois Hollande, in Paris included some 20 agreements and a $25-billion accord under which Iran will purchase 73 long-haul and 45 medium-haul Airbus passenger planes to update its ageing fleet. Carmaker Peugeot—which was forced to pull out of Iran in…

  • Computerized Trading Creating Oil Price Volatility

    Recently, I dedicated some time studying in much further depth the explosion in volatility in the broader market as well as in underlying stocks. We have witnessed unprecedented volatility in E&P stocks in recent months. But the commodity crash is spreading to Biotechs and even the broader technology sector with the implosion of Linkedin stock last week. First, it is important to note what is driving the incremental volume as overall investor participation in day-to-day trading wanes. Every investor has witnessed a huge decline in overall liquidity, in part due to an investor class disenfranchised by 7 to 8 years…

  • No Agreement on OPEC Meeting After Venezuela Meets With Saudi Arabia

    The prospects for an emergency OPEC meeting to initiate coordinated production cuts took a hit this weekend. Venezuela’s oil minister Eulogio del Pino flew to Riyadh to meet with Saudi officials, which followed a recent trip to Moscow to gin up support from Russia for their cooperation. Venezuela has sent a formal request to OPEC for an emergency meeting, and del Pino has been conducting some shuttle diplomacy to build support to stabilize oil prices. However, after meeting with Saudi Arabia’s oil minister Ali al-Naimi, a very powerful voice in forming OPEC strategy, the meeting adjourned with no agreement. Although…

  • Oil Off To Bad Start Of The Week As Dollar Gains Strength

    On the 84th birthday of John Williams, the crude complex is looking anything but composed. There are lots of reasons for cheer today – Chinese Lunar New Year (hark, year of the monkey), the Rio Carnival, to name two – but price action in financial markets is not one of them. As dollar strength returns and economic concerns are stoked, crude prices are starting the week looking lower. There is the usual post-Nonfarm Friday dearth of U.S. economic data, with focus for the crude complex shifting instead to oil-specific releases this week. Today we get the EIA’s drilling productivity report,…

  • Uncertainty Lingers Over LNG As Chinese Demand Wavers

    Liquefied natural gas (LNG) prices were one of the best performers of the past week. With the Japan-Korea Marker price jumping 17.2 percent in a matter of days — in the wake of a production outage at Russia’s Sakhalin-2 export terminal. But despite that short-term lift, there’s a lot of worry in the LNG sector these days. Which was enhanced by news late last week that the world’s #3 LNG consumer just saw demand drop for the first time ever. That big buyer is China. Where a new report from the U.S. Energy Information Administration showed that LNG imports fell…

  • Genel Producing Oil For $1 Barrel, Investors Still Cautious

    In the oil patch today, it is indeed the survival of the fittest. So when one of the largest producers in Iraqi Kurdistan, Genel Energy Plc, comes out swinging with production costs as low as $1 per barrel, it inspires a new confidence that may or may not be sustainable given the regional security threats and the difficulties producers are having getting paid for their oil. Still, it’s an impressive number that renders Kurdistan one of the cheapest oil venues on the planet. Fall in Genel vs Crude Oil (Click to enlarge)With such low production costs, one would assume that…

  • Tesla Falling Out Of Favor With Investors

    Elon Musk is a genius and a visionary who is almost single handedly changing the future of mankind through three different industries at once. With that said, it’s not clear if investors can easily benefit from any of that. Tesla, the company most associated with Musk is in a downward stock spiral over the last month which has taken it to new 52 week lows. There are many reasons for that downward spiral including concerns about market valuations and weak oil prices (which make Tesla’s correspondingly less attractive as a substitute versus conventional cars). But for the first time, Tesla…

  • Despite Huge Losses Oil Companies Reluctant To Shut In Production

    As energy investors look for reasons to be optimistic, many are keeping close tabs on supply figures. There are some signs that supply is taking a hit from disparate parts of the globe. According to Bloomberg, China might see its output dip by 3 to 5 percent in 2016, down from a record high of 4.3 million barrels per day (mb/d) last year. If that occurs, it would be the largest drop since at least the early 1990s and the first decline in seven years. China’s oil production does not get nearly as much press as its consumption figures do,…

Martin tiller