• 3 minutes Nucelar Deal Is Dead? Iran Distances Itself Further From ND, Alarming Russia And France
  • 5 minutes Don Jr. Tweets name Ukraine Whistleblower, Eric Ciaramella. Worked for CIA during Obama Administration, Hold over to Trump National Security Counsel under Gen McCallister, more . . . .
  • 9 minutes Shale pioneer Chesepeak will file bankruptcy soon. FINALLY ! The consolidation begins
  • 12 minutes China's Blueprint For Global Power
  • 7 hours Science: Only correct if it fits the popular narrative
  • 3 hours Crazy Stories From Round The World
  • 2 hours What are the odds of 4 U.S. politicians all having children working for Ukraine Gas Companies?
  • 24 hours EU has already lost the Trump vs. EU Trade War
  • 17 hours China's Renewables Boom Hits the Wall
  • 8 hours Do The World's Energy Policies Make Sense?
  • 2 days ''Err ... but Trump ...?'' *sniff
  • 18 hours Forget out-of-date 'dirty oil' smear, Alberta moving to be world's cleanest oil industry
  • 11 hours Impeachment Nonsense
  • 2 days Pioneer's Sheffield in Doghouse. Oil upset his bragging about Shale hurt prices. Now on campaign to lower expectations, prop up price.
  • 2 days Tesla Launches Faster Third Generation Supercharger
  • 23 hours Water, Trump, and Israel’s National Security
  • 2 days Passerby doused with flammable liquid and set on fire by peaceful protesters
  • 1 hour Who writes this stuff? "Crude Prices Swing Between Gains, Losses"

Breaking News:

Russia Plans To Boost Crude Oil Exports

Alt Text

The Science Behind Detecting A Wormhole

Wormholes have always fascinated humans,…

Alt Text

The Top 5 Ways We Use Oil & Gas

Oil & gas products are…

Alt Text

Worrying Data For OPEC

OPEC’s latest edition of its…

Editorial Dept

Editorial Dept

More Info

Premium Content

A Limited Risk Play In A Shaken Market

It has been another crazy week in the stock market as traders have reacted to a signal of impending recession sent by U.S. Treasuries. At one point earlier this week, the yield on the 10 Year Treasury Note briefly dropped below that on the 2 Year, completing the “inversion” of the yield curve that started to form back in December when the 5 Year yield fell below the 2 Year. As I’m sure you are aware by now, the 2s 10s inversion has preceded every recession in the last 50 years, but what has not been said as often is that not every inversion has resulted in a recession.

Given the distortion in global bond markets that has resulted from post-recession central bank intervention around the world, there is a good chance that this will be one of the false signals. Stock traders, however, have reacted as if a recession is certain, and one of the hardest-hit sectors has once again been energy. That isn’t a surprise. It has been a frustrating year for energy investors as every hint of a slowdown has put stocks in the sector under pressure, and a full-blown recession would obviously impact energy demand.

After such a bad year, though, much of the pessimism that the inversion has engendered in stock traders was already priced into the more globally sensitive energy markets. That makes this push lower look like a good opportunity for those with a longer-term view to start picking up something like the energy sector ETF (XLE) at what looks like a discount.

I’m…



Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play