• 4 minutes Ten Years of Plunging Solar Prices
  • 7 minutes Hydrogen Capable Natural Gas Turbines
  • 10 minutes World looks on in horror as Trump flails over pandemic despite claims US leads way
  • 13 minutes Large gas belt discovered in China
  • 2 hours Would bashing China solve all the problems of the United States
  • 4 hours Model 3 cheaper to buy than BMW 3 series.
  • 35 mins Thugs in Trumpistan
  • 7 hours China To Boost Oil & Gas Exploration, As EU Prepares To Commit Suicide
  • 5 hours Pompeo's Hong Kong
  • 6 hours Yale University Epidemiologist Publishes Paper on Major Benefits of Hydroxchloroquine for High-risk Outpatients. Quacksalvers like Fauci should put lives ahead of Politics
  • 2 hours China’s Oil Thirst Draws an Armada of Tankers
  • 4 hours Coronavirus hype biggest political hoax in history
  • 18 hours US-China tech competition accelerates: on Friday 05/15 new sanctions on Huawei, on Monday 05/18 Samsung chief visits China
  • 3 hours Chicago Threatens To Condemn - Possibly Demolish - Churches Defying Lockdown
  • 17 hours Income report showing potential future spending and economic growth
  • 19 hours The CDC confirms remarkably low coronavirus death rate. Where is the media?
  • 1 day COVID 19 May Be Less Deadly Than Flu Study Finds

How to Profit When Oil Prices Slide

Oil prices continue to slide. On the first day of October West Texas Intermediate (WTI) dipped below $90 per barrel for the first time since spring 2013. Brent also declined, dropping below $93 per barrel, its lowest level in more than two years.

The sudden decline in oil prices, owing to a combination of greater supplies from U.S. shale, weak global demand, and a strengthening U.S. dollar, caught many by surprise. Investors have grown accustomed to the commodity boom, which saw rising prices for raw materials across the board over the last decade. Oil prices seemed to be on a relentless climb upwards, stopped only by the 2008 financial crisis. After recovering in 2009, they resumed their upward trajectory.

While the underlying supply and demand picture for oil still points to rising prices in the coming years, for now investors should keep in mind that the commodity boom may be coming to an end. Saudi Arabia cut its selling price for crude oil on October 1, an indication that it may be willing to live with lower oil prices for a while rather than pursue an aggressive cut back strategy to prop up prices.

All of this is to suggest that oil markets could remain soft for an extended period of time. How, then, to profit in the energy sector with a growing surplus of oil?

Refining

First, take a look at the refining sector. Refiners operate in a notoriously low-margin environment, but U.S. refiners have benefited from the surge in oil production…




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