WTI crude oil prices settled back down below $100 per barrel this week, but according to Money Morning's Global Energy Strategist Dr. Kent Moors, oil prices may not stay that low for very long.
Today I want to tell you a story about energy - especially crude oil.
It involves my run in with the steak bandit...
Just stay with me here...
It begins last Saturday. On a trip to the local supermarket, I saw something you just don't see every day.
You see, I always do the grocery run. It is one of several clauses that have appeared over time in my marriage contract (no doubt about it, this is one document you need to read before signing!).
As I left the store, a crowd had formed outside. There were police all around and the parking lot had been sealed shut.
It turns out a fellow had shoved some steaks down his pants and made a dash for it.
By the time all of us had stretched our necks to see what was going on, the suspect was just sitting... in a car that wouldn't start... with the doors locked... and the windows up... in 90-degree heat.
All in all, he couldn't have been having a very good day.
Maybe he was that hungry. Or maybe he forgot his wallet at home and was late for a party. I'm not sure.
Either way, he was bound for the Allegheny County Jail.
(By the way, the jail is the impressive newer-looking building by the Monongahela River in downtown Pittsburgh. You can't miss it. It looks like an upscale Holiday Inn.)
But I digress; back to the steaks... Full Story
Today I want to tell you a story about the steak bandit. Just stay with me here. This is a story about energy - especially crude oil.
Last Saturday at the grocery store, a fellow shoved some steaks down his pants and made a dash for it. Aside from a possible commentary on the plight of some people in the current economy, the episode with the "steak bandit" brought back a memory, along with a broader implication for the energy sector.
WTI crude oil prices for September delivery were down $1 today (Tuesday) to $100.67 per barrel, while Brent crude dropped $0.17 to $107.39 per barrel, despite the fact that geopolitical tensions in the Middle East and Russia remain.
Oil prices hit two-week highs last week as tensions in the Ukraine and the Middle East intensified.
While WTI crude oil prices are down from their 52-week high $106.64 from June (as the Iraq crisis escalated) the humanitarian and political crises taking place throughout the Middle East and Russia will continue to have an impact on oil prices moving forward…
A bevy of geopolitical issues sent WTI (West Texas Intermediate) crude oil prices higher late Thursday, with prices peaking at $103.94 per barrel for August delivery just before 7:00 p.m. Today, crude oil prices have settled back down below $103 per barrel this morning.
Crude oil prices may be back down today, but they're still up nearly 15% from their $89.74 low in January.
For many years, industry experts have been sounding the alarm that America, and the world, are about to run out of oil.
Every expert who's predicted "the end of oil" has been wrong in the past. But with global energy consumption at an all-time high, and much of the world's economy dependent on oil, the question is: Are we running out of oil?
WTI crude oil prices for delivery in August were down slightly yesterday (Tuesday) to $103.43 a barrel, which was a $0.10 drop from Monday. And while crude oil prices are down from 52-week highs, they're still at inflated levels because of the crisis in Iraq.
But that doesn’t mean investors can’t profit. Money Morning’s Dr. Kent Moors has found oil stocks to buy now that are profiting from foreign turmoil.
In August, the U.S. government will begin allowing the exportation of crude oil for the first time in 40 years.
That has many American consumers wondering what will happen to crude oil prices now that the United States is exporting oil.
Money Morning's Global Energy Strategist Dr. Kent Moors appeared on CCTV Friday and discussed the benefits of U.S. oil exportation, and what effect oil exports will have on consumers and oil prices.
After over four decades, it looks like America is getting back into the oil export business again.
For the first time since the 1970s, Washington has opened the door to sending more U.S. crude oil abroad.
Crude oil futures ticked a tad lower Thursday as investors digested the supply and export outlook in Iraq, as well as demand prospects from the United States - but the dips are likely temporary.
As Money Morning Global Energy Strategist Dr. Kent Moors recently explained, prices further out on the futures curve are rising much more quickly than anticipated as worries mount over global supply and demand.
Futures prices for both crude and gasoline were down yesterday. Unfortunately, that barely tells the real story.
Thanks to the growing Sunni insurrection and the rapid unraveling of the Shiite government in Baghdad, you can bet that prices for both crude and gasoline will be making the headlines over the next two months.
As the next-month rates (August 2014) fell in yesterday's trade, oil prices as far out as December 2018 began to spike.
Stock market today, June 23, 2014: U.S. stock markets dipped on Monday as corporate mergers continued to make headlines and the United States saw home sales rise for a second consecutive month. Last month, sales of previously owned homes increased by 4.9%, the fastest one-month gain since August 2011.
The price of West Texas Intermediate crude oil was up 0.83% to $107.26 a barrel. The yield on the 10-year Treasury note remained in Friday's range of 2.61%.
Money Morning Global Energy Strategist Dr. Kent Moors appeared on CNBC's "Closing Bell" on Fridayto discuss what geopolitical conflict in Iraq will do to crude oil prices and the effect on gas this week.
On Friday, Islamic State of Iraq and Greater Syria (ISIS) insurgents attacked Baji, an area about 200 miles north of Baghdad. Baji houses the largest refinery in Iraq, which accounts for almost a third of the country's refining capacity. Although the Iraqi government said it held Baji against the attack, ISIS has control of areas just outside the refinery.
Watch the video to see where Moors thinks "exceptionally unstable" crude oil prices will go from here, and whether gas prices will hit $4 per gallon this week...
Everyone wants to know why the price at the pump just keeps going higher.
The last time I discussed this issue was in late April. Since then, pump prices in the United States have jumped more than 12%.
Five years ago, the global oil market hit "panic" prices that ultimately exceeded $147 a barrel,
Crude oil prices are hovering near 52-week highs this morning (Wednesday), following news that Sunni militant fighters have attacked Iraq's main oil refinery in the city of Baiji.
Importantly, today's attack does not impact export production or export routes, but that doesn't mean that the mounting crisis won't have a major impact on crude oil prices today.