• 3 minutes Biden Seeks $2 Trillion Clean Energy And Infrastructure Spending Boost
  • 6 minutes Pompeo upsets China; oil & gas prices to fall
  • 11 minutes The Secret China Iran Oil Deal At The Heart Of One Belt One Road Project
  • 5 hours Trump Hands Putin Major Geopolitical Victory
  • 11 hours Trump Suggests Delaying Election Amid Fraud Claims
  • 10 hours Rational analysis of CV19 from Harvard Medical School
  • 7 hours While U.S. Pipelines Are Under Siege, China Streamlines Its Oil and Gas Network
  • 5 hours End Game For Oil? OPEC Prepares For An Age Of Dwindling Demand
  • 3 days The World is Facing a Solar Panel Waste Problem
  • 1 day "The Great Reset" What does this mean for you.
  • 1 day Mask Disposal
  • 2 days You may all go to hell
  • 1 day Biden admits he has been tested for Cognitive Decline several times. Didn't show any proof of test results.
  • 13 hours What happens to oil and gas production when 1/2 of Oklahoma is handed over to the Tribes
  • 2 days Is The Three Gorges Dam on the Brink of Collapse?
  • 3 days Trump is turning USA into a 3rd world dictatorship
Dan Dicker

Dan Dicker

Dan Dicker is a 25 year veteran of the New York Mercantile Exchange where he traded crude oil, natural gas, unleaded gasoline and heating oil…

More Info

Oil Will Be The Place To Be In 2016 And 2017

After insane volatility in oil and oil stocks, a recap on the macro scene in energy and the few specific stocks need updating after this week's carnage (and only partial recovery).

First, to the macro: Oil and oil companies continue to follow the timetable of destruction whose path began almost exactly one year ago today. Of the five major inputs to the decline on oil that I outlined in my book leading to oil's continuing price collapse, it is obvious that the Chinese GDP fantasy (and also the Yuan devaluation race) was the straw that broke oil's back on Monday (as well as the major averages). I was rather certain that oil's lows of the early spring would not be significantly broken, but the power of the Chinese disaster was enough to send it briefly down to $38. To be instantly clear about this, this move did NOT signal a sell, nor upset my macro scenario in oil or oil stocks.

We have always maintained that oil's bust would be a very long process, with no significant bull market reestablishing itself until at least the end of 1Q 2016. Production from OPEC sources is inelastic in that there are no incentives to impose tougher quotas – the Saudi plan is working in destroying US production competition and hobbling Iran and they won't let up until there is quite a bit more blood on the streets in the form of bankrupted shale players and reduced projected supply from other OECD sources.

And the signs for that coming soon are everywhere. Rigs, down 1000…




Oilprice - The No. 1 Source for Oil & Energy News