• 6 minutes Trump vs. MbS
  • 11 minutes Can the World Survive without Saudi Oil?
  • 15 minutes WTI @ $75.75, headed for $64 - 67
  • 5 hours Satellite Moons to Replace Streetlamps?!
  • 2 days US top CEO's are spending their own money on the midterm elections
  • 20 hours U.S. Shale Oil Debt: Deep the Denial
  • 17 hours EU to Splash Billions on Battery Factories
  • 1 day The Balkans Are Coming Apart at the Seams Again
  • 7 mins The Dirt on Clean Electric Cars
  • 13 hours Owning stocks long-term low risk?
  • 17 mins Can “Renewables” Dent the World’s need for Electricity?
  • 2 days Uber IPO Proposals Value Company at $120 Billion
  • 2 days OPEC Is Struggling To Deliver On Increased Output Pledge
  • 1 day 47 Oil & Gas Projects Expected to Start in SE Asia between 2018 & 2025
  • 2 days A $2 Trillion Saudi Aramco IPO Keeps Getting Less Realistic
  • 11 hours The end of "King Coal" in the Wales
Alt Text

Iran Sends Record Amount Of Oil To China

Tanker tracking data suggests that…

Alt Text

Iran: Saudis Aren’t Replacing Our Oil Exports

Iranian Petroleum Minister Bijan Zanganeh…

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

Trending Discussions

Why Oil Will Stay Strong for Some Time to Come

Egypt is the big topic on oil trader’s minds this week but it really shouldn’t be. Although it’s been tapped as the reason WTI oil has drifted above $100 a barrel, it’s only the last of several financial and geopolitical reasons that have kept oil strong for the past several months despite the shaky performance of just about every other asset class.

And now that the military has asserted itself in Egypt and taken Morsi down from power, there might be a tendency to think that the situation will cool and so will the price of oil, but I don’t believe that.  The commentary on Egypt has been celebratory, but I doubt very much that the Muslim Brotherhood will take their stripping from power easily.  Indeed, even as we watch closely the events in Tahrir Square unfold, we are conveniently forgetting the many other geopolitical tinderboxes in the Middle East and elsewhere continuing to brew.  There’s a newly US-funded resistance in Syria, an Iraq on the brink of civil war, a new government in Libya – even the recent political problems in Brazil might lead to some production issues down the road.

Add this to the financial inputs into the crude price that I speak about so often and have written about in my book and you’ve got a market that even over $100 a barrel has all the risks to the upside. 

As I recommended last week, higher beta Exploration and Production names will fare best in this environment,…

To read the full article

Please sign up and become a premium OilPrice.com member to gain access to read the full article.

RegisterLogin

Trending Discussions





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