Insider Secrets

Insider Secrets

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

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Premium Article Archive

  • 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…

  • Global Energy Advisory – 22nd May 2015

    Politics, Geopolitics & Conflict South Sudan South Sudanese rebels claim to have captured a key refinery for the country’s largest oilfield (Paloch) in the Upper Nile State. The rebel MO here is to target oil facilities in order to deprive the government of oil revenues—upon which the budget is entirely dependent and which represents its only way of financing the fight against the rebels in this civil war. The two-year civil war pits forces loyal to South Sudan President Salva Kiir against ‘rebels’ allied with Kiir’s former deputy, Riek Machar. South Sudan only achieved independence from Sudan in 2011. While…

  • 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…

  • Two Of The Best Short-Term Plays Right Now

    We need an updated strategy if we’re staying in the oil game. Not a new one, mind you – the plan I’ve laid out for the long-term trends in oil is, I think, going to be the absolute right one – but an adjustment for the trader in our midst is necessary.I’ve been clear about what I believe is the most prudent way to invest in the sector – banking on a very slow rebound in oil prices can make for some conservative picks in energy companies that I believe are going to rebound best from the ‘shale bust’ .…

  • How To Think Like A Trader

    As many of you will be aware, there are two basic approaches to stock selection, commonly known as top-down and bottom-up. The former involves looking at big picture economic factors, arriving at a base scenario and then finding trades that will profit when that scenario plays out. The latter is about starting with a company’s fundamental position and assessing whether that individual stock will outperform or underperform the general market. My background in currency and commodity markets makes the top-down approach a more natural one for me to use, but as I have transitioned to more stock plays I have…

  • Game-Changing Tech For The Offshore Sector

    IntroductionDespite all of the hype around the shale revolution in the United States, over the long-term, US shale is expected to deteriorate. Owing to high initial decline rates, shale may not be around for the long haul.That will put the focus back on some conventional spots in the next decade or so. Perhaps most important among them is the offshore sector, which still has vast reserves that are underexplored.Some of the best offshore wells can provide steady production for decades. But the easiest stuff has been drilled out. That has the majors going deeper and farther offshore. Ultra-deepwater, pre-salt off…

  • Global Energy Advisory – 15th May 2015

    Geopolitics & OilLet the games begin in Cuba …As the US and Cuba work to restore diplomatic relations, keeping in mind that we are doubtful the US trade embargo on Cuba will be lifted until after the 2016 presidential elections, Cuba is flaunting what it says are billions of barrels of oil in its offshore Gulf of Mexico territory. So far, there isn’t a great amount of excitement over Cuba’s announcement. In 2012, three exploration wells came up dry and, at present, most are eyeing new opportunities in Mexico since it opened up its oil and gas to foreign companies…

  • 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…