• 4 minutes End of Sanction Waivers
  • 8 minutes Balancing Act---Sanctions, Venezuela, Trade War and Demand
  • 11 minutes Mueller Report Brings Into Focus Obama's Attempted Coup Against Trump
  • 14 minutes What Would Happen If the World Ran Out of Crude Oil?
  • 1 hour ..
  • 8 mins New German Study Shocks Electric Cars: “Considerably” Worse For Climate Than Diesel Cars, Up To 25% More CO2
  • 2 hours Summit: Kim, Putin To Meet Thursday in Russia’s Far East
  • 12 hours Deep Analysis: How China Is Replacing America As Asia’s Military Titan
  • 10 hours Don't Climb Onto the $80+ Oil Price Greed Roller Coaster, Please.
  • 2 hours Iran Sabre Rattles Over the Straights of Hormuz
  • 18 hours Populist Surge Coming in Europe's May Election
  • 1 day Saudi Arabia Says To Coordinate With Other Producers To Ensure Adequate Oil Supply
  • 1 hour China To Promote Using Wind Energy To Power Heating
  • 31 mins Nothing Better than Li-Ion on the Horizon
  • 22 hours Liberal Heads Explode as U.S. Senate Confirms Oil Lobbyist David Bernhardt as Interior Secretary
  • 4 hours How many drilling sites are left in the Permian?
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

How To Play The Oil Rally

Oil Rig

We’ve been nearly alone in taking in some stellar gains in oil stocks since late October, benefiting from an oil rally that few analysts (besides myself) saw coming and positioned themselves for. And the watchword for today is: Let it ride.

You know that I am a long-term bull on oil prices and oil stocks, and even the impressive extension of WTI prices near to $65 a barrel this week throws only a little cold water on my expectations. We’re in the driver’s seat now. You can take some money off the table, sure – but for the most part, let everyone else chase and play catch-up with our stocks.

I was on Bloomberg TV on Wednesday to engage in a bull/bear debate on oil – as if this rally from the mid-forties only began yesterday. A clip from Jeff Currie of Goldman Sachs was played to start the debate, where he noted the robust oil demand expectations for 2018, but was pessimistic about sustaining $60 oil based upon the deep backwardation of the futures markets.

In person, I debated Michael Cohen of Barclays, whose main pessimism was based upon the 1.5m barrels a day of US production he expects to see added in 2018 – a projection that far exceeds even the very unlikely (according to me) 1m barrels a day from the EIA. But Cohen’s 2018 target for WTI – $52 – is already twelve dollars in the rear-view mirror. Um, that’s not so comforting a forecast – considering its still only the 12th of January.

But,…




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