Crude Oil

How Syria Affects Oil Prices Today

Gasoline pump left Q

As U.S. military personnel prepare for possible action against Syria, Brent oil prices are hovering near an 18-month high.

On Thursday, Brent oil prices retreated slightly, but remained elevated, after starting the day above $116 a barrel. Prices for West Texas Intermediate (WTI) also retreated by a little more than 1%, closing the day at $108.80.

Brent prices have climbed steadily following escalations across Egypt and the ousting of President Mohamed Morsi.

Meanwhile, in the United States, improved infrastructure and greater network access have fueled WTI prices to near par with Brent this month.

But Brent prices have spiked this week following news that the West may intervene in Syria, where a chemical attack was allegedly launched against civilians.

Despite warnings from Russia and China, it remains unclear whether the United States will intervene. However, any action is likely to set off a chain reaction across the Middle East and could affect trade within the region, especially on oil shipments.

Here are the details on how Syria affects oil prices, what that means for you - and how to profit.

To continue reading, please click here...

Jim Rogers on Why Oil and Gold Are Headed "Much Higher"

Ammo AK47 q

Legendary commodity investor Jim Rogers sees some serious problems stemming from the situation in Syria and the end of the Fed's generous flow of money.

In an interview with Reuters on Tuesday, Rogers said "oil and gold will go much, much higher" due to a "market panic."

"I own oil, I own gold, I own things like that and if there is going to be a war, and it sounds like America is desperate to have a war, they're going to go much, much higher," Rogers said. "Stocks are going to go down, some of the markets that I'm sure are already going down, commodities are going to go up. I'm not particularly keen on war, I assure you, but it sounds like they want it."

Rogers continued, "No matter how well the plans are made, strange things happen in war and who knows what unintended consequence will come."

Equities have been hit hard over worries of a war with Syria. The rout started late Monday following comments from U.S. Secretary of State John Kerry that the United States has a moral obligation to act on Syria's chemical weapon attacks. Selling picked up steam Tuesday with the Dow plunging 170 points.

To continue reading, please click here...

How to Invest in Oil as Pipelines Release Trapped Profits

oilfaucet

The story of how to invest in oil in the U.S. is changing thanks to a new development...

Before now, much of the increased oil production (U.S. output at a 17-year high) from the Bakken in North Dakota and the Eagle Ford and Permian Basin in Texas never reached the marketplace. It simply piled up in storage facilities at the main U.S. oil hub in Cushing, OK.

The huge inventory of oil at Cushing was the main culprit behind domestic WTI (West Texas Intermediate) crude oil selling at a discount to the global benchmark, Brent crude oil.

But, as pointed out by Money Morning Global Energy Specialist Dr. Kent Moors, that is all beginning to change.

Already the spread between WTI and Brent has narrowed dramatically from about $20 a barrel in February to less than $3 a barrel today.

The reason for the change is the amount of pipeline infrastructure being added to move oil from the Cushing choke point to refineries on the Gulf Coast.

To continue reading, please click here...

Another Shoe Has Dropped… and It's a Big One

I wasn't more than 30 minutes outside of D.C. the other night before my cell phone started ringing.

The calls involved breaking new developments overseas that promise to have a big impact on the global energy markets. They concerned a major global energy situation that is likely to create a domino effect that will have consequences for U.S. domestic policy.

To continue reading, please click here...

DON’T BE SO ARROGANT, MR. PRESIDENT

Empires have come and gone. Some lasted a blink of an eye and some millennia.
The question is, after 9/11, the rise of China and a great financial crisis, where does the U.S. empire stack up to its predecessors?
Well, it seems the one commonality they all have is the point when their might was undermined by sloth and greed. And entitlements: free bread and circuses. For some it took years, others centuries.
Here, in a compelling and unique address, is what Romulus Augustus, the last emperor of the Roman Empire, might say to President Obama now about how to keep America great.
Read on and share with family and friends...

A Big Time Squeeze for Refineries is About to Begin

Energy oil barrel

After banking some very hefty profits for Energy Advantage and Energy Inner Circle subscribers on refining stocks earlier this year, the entire sector now is about to land "between a rock and a hard place."

Once a high-flying place for investors to earn substantial profits, refiners have been under pressure for the last two months. But that's actually just the beginning of what's to come.

To continue reading, please click here...

The Latest Obama Outrage: the Family's $100 Million Vacation

Flip flops Q

How much do you spend on your summer vacation? American households usually spend about $1,200 per person on summer vacations, according to a recent American Express survey.

Presidents spend more on their vacations than you or I. They have to. Air Force One and security does cost more than loading the Honda and heading to the beach.

Here's how much some recent presidents spent our tax dollars on vacation.

Ronald Reagan spent most of his free time at his California ranch. Taxpayers covered the cost of approximately $8 million for presidential travel during Reagan's first six years in office, according to the Los Angeles Times. That amounts to $1.3 million a year.

For George Bush the cost of flying Air Force One to his Texas ranch was approximately $56,800 per trip, for each of the 180 trips according to Media Matters. President Bush spent Christmas during his two terms at the White House so his staff and secret service could spend the holiday with their family, according to Conservative Byte.

Now Obama plans to blow away all previous presidents' leisure travel costs on our dime with a better than Disney World extravaganza trip to Africa.

However Obama had to cancel the safari because of the need to fill the surrounding jungle with snipers to guard the president from wild animals!

To continue reading, please click here...

Why the Fed's QE Policy is Bullish for Oil Prices

Most investors have followed what the Fed's QE policy has done to gold, but few realize its impact on oil prices.

Recently, I talked about how crude was beginning to occupy a position as a store of market value ("Why Oil Is Becoming the New 'Gold Standard," May 20, 2013). The development has been a direct consequence of the flight from holding gold.

That flight may be tapering and a new floor established for the next major spike by the metal.

The problem is there is no agreement on which direction that move will be...

These days, a sudden improvement in gold prices may only extend as far as hedge funds and institutional investors covering shorts.

Nonetheless, there is an interesting parallel developing between the plight of gold and crude oil prices.

These Oil Stocks Are the Big Winners in This Year's "Summer Pop"

I have been "in the field" for the past several days and will be back in circulation later this week. But I wanted to send you a note on what's been taking place recently.

The last two trading sessions have seen a spike in oil stocks. The rise has been focused on companies that provide services to early-stage field development, as well as for crude production.

Now, we have witnessed a similar "summer pop" in each of the past three years. It tends to signal a rise in expected medium-term demand for both crude oil and oil products.

However this time around, the improvement isn't reflected in companies across the board, but rather in those emphasizing geographically specific field plays.

To continue reading, please click here...

How to Invest in Oil's Final Frontier: The Arctic

Polar bear

Investors searching for how to invest in oil in 2013 should be focused on these latest developments from the Arctic.

In fact, countries are racing to get a piece of what could be the final frontier for oil...

As ice melts in the Arctic region, oil and gas trapped beneath the water becomes more accessible.

Money Morning Global Energy Strategist Dr. Kent Moors recently explained to Money Morning members about the search for Arctic oil and gas.

He spoke about the years-in-the-making U.S. Geological Survey's Circum-Arctic Resource Appraisal. The study found that 84% of the total undiscovered oil and gas left on the planet is located above the Arctic Circle, mainly offshore and in three huge basins that lie under shallow seas.

To continue reading, please click here...