• 4 minutes Phase One trade deal, for China it is all about technology war
  • 7 minutes IRAN / USA
  • 11 minutes Shale Oil Fiasco
  • 16 minutes Swedes Think Climate Policy Worst Waste of Taxpayers' Money in 2019
  • 5 hours China's Economy and Subsequent Energy Demand To Decelerate Sharply Through 2024
  • 5 hours Indonesia Stands Up to China. Will Japan Help?
  • 5 hours Beijing Must Face Reality That Taiwan is Independent
  • 6 hours Gravity is a scam!
  • 24 hours What's the Endgame Here?
  • 4 hours US Shale: Technology
  • 2 days 10 Rockets hit US Air Base in Iraq
  • 1 day Canada / Iran
  • 2 days Wind Turbine Blades Not Recyclable
  • 2 days Tales From The Smoke Shack and beyond.
  • 1 min Prototype Haliade X 12MW turbine starts operating in Rotterdam
  • 2 days IRAQ / USA
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 You Have to be Long the Domestic E+P’s.

The big head fake in energy, the one that has somewhat confused me has been how the fantastic quarterly results from the independent E+P’s has affected the domestic price of crude oil.  Or, in fact, how it has not affected it.  

With massive production growth going again on record in the numbers of companies like EOG Resources (EOG) and Cimarex Energy (XEC) and dozens of others, we’ve seen a glut of crude oil pour into the Mid-continent and literally search for a place to stay.  While I’ve maintained that even a large influx of new crude wouldn’t have enough power to crater the price action of the domestic West Texas Intermediate benchmark, I did bet heavily that the differential between domestic crude and global crude prices would increase.  That just hasn’t happened.  

I made bets on the WTI/Brent spread at around $6, but hoped very much that the killer reports on earnings would translate into glutted supplies and a relatively weak WTI price, at least compared to a global Brent price that is still guided by upwards geopolitical pressures in Libya, Ukraine, Iran and Iraq.  

But proving that oil trading is very tough indeed, the spread has virtually gone unchanged for the last several weeks, remaining at $6 and confounding me and, I imagine, most of the other dedicated oil traders out there.  Perhaps that is the charm, if there is one, in trading oil – like Forrest Gump’s box of…




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