• 3 minutes Why NG falling n crude up?
  • 7 minutes Tesla Battery Day (announcements on technology)
  • 10 minutes America Could Go Fully Electric Right Now
  • 11 hours Taxes. Personal and Corporate. Trump vs BIden Family. Plans vs Records.
  • 20 hours Kalifornistan, CO2, clueless politicians, climate hustle
  • 11 hours California’s Electric Vehicle Dream Has A Major Problem: No
  • 1 min The China Daily newspaper just did a flash poll of 1600 Chinese Communist Party members. 98% said Biden won the debate.
  • 33 mins Ilhan Omar connected Ballot Harvester in cash-for-ballots scheme
  • 29 mins Something wicked this way comes
  • 15 hours Debate Night: Trump needs to be concerned about left leaning Chris Wallace , not Biden
  • 23 hours BLM organizer plows her car thru Trump supporters. She was arrested and charged with attempted murder

Time To Dip A Toe Back Into The Ocean

Investors are generally better off paying little attention to weekly oil inventory and production figures. They can cause an immediate reaction in the oil markets, but can often send false signals. In addition, the implications of a weekly number are, by their very nature, short term. Over the last couple of weeks though, the numbers released by the IEA, and this week's report in particular, offer some encouraging news for energy investors.

Inventories climbed, for sure, and that marks the 15th consecutive week that inventories have remained above the eighty year high, which puts the current supply level into perspective. The rise, however, was less than expected and the production increase dipped below the short term moving average. Add to that strong demand, particularly for gasoline which was up over 4 percent year on year, and it hints that the worst may be over. That conclusion is certainly supported by the gradual recovery in oil prices.

That doesn’t mean, however, that caution should be thrown to the wind. There are some opportunities in Exploration and Production (E&P) companies, but bad news, of production cuts and downsizing is still dribbling out in some cases. Over the last month or so, I have recommended several plays with the proviso of small investments and fairly tight stop loss levels, and that strategy is still the best way to go, but it may be time to broaden the focus away from just fracking companies.

One other thing that should…




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