• 4 minutes Europeans and Americans are beginning to see the results of depending on renewables.
  • 7 minutes Is China Rising or Falling? Has it Enraged the World and Lost its Way? How is their Economy Doing?
  • 13 minutes NordStream2
  • 1 day Monday 9/13 - "High Natural Gas Prices Today Will Send U.S. Production Soaring Next Year" by Irina Slav
  • 12 hours California to ban gasoline for lawn mowers, chain saws, leaf blowers, off road equipment, etc.
  • 5 hours "Here is The Hidden $150 Trillion Agenda Behind The "Crusade" Against Climate Change" - Zero Hedge re: Bank of America REPORT
  • 3 hours "A Very Predictable Global Energy Crisis" by Irina Slav --- MUST READ
  • 3 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 1 day Two Good and Plausible Ideas about Saving Water and Redirecting it to Where it is Needed.
  • 2 days An Indian Opinion on What is Going on in China
  • 4 hours Can Technology Keep Coal Plants Alive and Well?
  • 1 day Succession Planning in Human Resources for Vaccinated Individuals in the Oil & Gas Industry
  • 3 days Perfect Energy Storm in Europe: turning our back on fossil fuels is easier said than done!
  • 2 hours Storage of gas cylinders
  • 3 days Nord Stream - US/German consultations
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

Why Crude Oil Producers Will Outperform in 2013

I view oil through a 25-year career of daily engagement in the futures markets.  It’s not the standard Wall Street view.

I can’t describe how all that experience comes together but I CAN show you a few of the commodity factors that I look at that others don’t  - making you more capable in understanding the energy sector, no matter what part of it you’re interested in. 

One of the less discussed but critical factors impacting the trajectory of oil prices are oil financial factors. 

Oil is priced physically at many points on the globe – and each price point is different, just like the same house would be priced differently depending on where you were.  But oil is also tied FINANCIALLY to the benchmark prices funneled through the exchanges that handle forwards and futures, and those prices are what really set the physical prices around the globe. 

Take our current circumstance: Global oil production is up about 800mm barrels a day in 2012 and demand is up perhaps 200-250mm barrels less than that.  That would imply an increasing surplus and why you’ve seen many oil analysts predict lower prices this year –BofA even suggested $50 a barrel as possible for 2013. 

Here’s why I think it won’t happen.

Two things are feeding into the financial price point for Brent oil traded at the Intercontinental exchange (ICE) that make a deeply dropping price unlikely…




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News