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  • Oil Prices

  • This China Province Will Become a Global Oil-and-Gas Market Powerhouse Like everything else, the balance of power in the global energy market is shifting toward China, where a little-known province is perfectly situated to become a global oil-and-gas market powerhouse.

    Nestled in the far northwest of China, Xinjiang is the country's largest province and the primary domestic source for oil and gas. It is sparsely populated and as big as Western Europe. The name, Xinjiang, literally means "New Frontier." And recent decisions in Beijing are going to give that translation even more meaning - transforming this province into a "new frontier" for the global energy sector.

    To understand how to profit from this development, please read on... Read More...
  • Crude Oil Prices Tumble as IEA Warns Economic Woes Could Stunt Demand Oil prices yesterday (Wednesday) fell below $80 a barrel after the International Energy Agency (IEA) warned that demand could be curtailed if global economic growth is weaker than expected.

    The warning came even as the IEA, an energy adviser to 28 industrialized countries, slightly increased forecasts for global crude demand for this year and 2011.

    However, those projections were based on revisions to historical oil-demand data and on forecasts issued by the International Monetary Fund (IMF) nearly four weeks ago. Since that time, economic news in the United has become gloomier.

    The U.S. Federal Reserve said after its policy meeting on Tuesday that the pace of economic recovery had slowed in recent months and was expected to be "more modest in the near term" than previously thought.

    Read More...
  • Why You Should Worry About the Iran Oil Sanctions I cut my teeth doing energy-related deals in the Soviet Union and still spend a lot of time consulting in Russia and the Caspian Sea basin. These days, my work takes me all over the globe. But the part of the world where my career began still holds the key for future oil supplies.

    Especially the Caspian.

    This land-locked body of water borders five countries, each having major oil-and-gas reserves.

    One of those countries is Iran - the focus of the latest problem that's cropped up in the global energy sector.

    And that "problem" - Iran oil sanctions - is certain to bring about an increase in the price of crude oil.

    Two sanction-spawned catalysts will boost oil prices. To see them, read on... Read More...
  • Question of the Week: Readers Respond to Money Morning's BP Image Query BP PLC (NYSE ADR: BP) last week confirmed that Robert Dudley - an American and a company insider - would be replace Tony Hayward as the company's chief executive officer in a move that's intended to improve the battered BP image.

    Dudley, who takes over Oct. 1, will have to take on a double-edged challenge. He has to continue the cleanup effort that he's headed since June. And he must persuade the U.S. government that BP should be allowed to continue offshore drilling work in the Gulf of Mexico - the region it has targeted for 25 of its 40 future production operations over the next five years.

    Because he's led the BP oil-spill-response efforts since June, Dudley has developed a much closer rapport with U.S. officials than his predecessor. Make no mistake: The respect he commands was a key reason for BP's swap at the top.

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  • We Want to Hear From You: Will BP's Makeover Restore the Oil Giant's Image? BP PLC (NYSE ADR: BP) confirmed Tuesday that embattled Chief Executive Officer Tony Hayward is being replaced by Robert Dudley - an American and a company insider - in a move that's intended to improve the oil giant's battered image.

    Dudley, who takes over Oct. 1, will have to take on a double-edged challenge. He has to continue the cleanup effort that he's headed since June. And he must also persuade the U.S. government that BP should be allowed to continue offshore drilling work in the Gulf of Mexico - the region it has targeted for 25 of its 40 future production operations over the next five years.

    Because he's led the BP oil-spill-response efforts since June, Dudley has developed a much closer rapport with U.S. officials than his predecessor. Make no mistake: The respect he commands was a key reason for BP's swap at the top.

    Read More...
  • New 'Energy Advantage' Advisory Service Uncovers Top Energy-Sector Profit Opportunities Oil prices will reach a record $150 a barrel in the next 12 months, sending gasoline prices to $3.80 a gallon. Commercial nuclear power will continue its comeback, but as small, sealed "mini-reactors" that can produce energy for up to 60 years - instead of as the hulking power plants of years gone by.

    New global-warming regulations will turn air-pollution credits into financial assets that can trade like stocks or bonds. And a little-known U.S. pipeline and East Coast shipping terminal will transform the formerly fragmented U.S. natural-gas market into a fast-moving global marketplace - with profit opportunities to match .

    To help investors profit from these global opportunities, Dr. Kent Moors - a career-energy-sector insider who is an advisor to six of the world's Top 10 oil companies and a consultant to some of the world's largest oil-producing nations - has launched the Energy Advantage advisory service.

    Read More...
  • The "New" Global Energy Sector: "The Profit Opportunity of Our Lifetime" Oil prices will reach a record $150 a barrel, sending gasoline prices to $3.80 a gallon. Commercial nuclear power is making a comeback - but in "nuclear batteries," instead of in hulking power plants of the past. New global-warming regulations will turn air-pollution credits into financial assets that can trade like stocks or bonds. And China's zooming growth will turn the global energy sector upside down.

    If this sounds like a view of the distant future - the global energy sector's own version of "Future Shock" - think again.

    All of these "predictions" are becoming a reality, even as you read this. And while these transformative events will likely make the global energy sector more volatile and confusing than ever, they are also creating the largest wealth-creating opportunities that most investors will ever see, says Dr. Kent Moors, a career energy-sector consultant who works with governments and corporations throughout the world.

    For all the details on Dr. Moor's energy-sector predictions, please read on... Read More...
  • Australia Reduces Mining "Super Tax," Reviving Profitability of Resource Sector Australian mining companies declared a huge win today (Friday) when the government announced the proposed mining "super tax" would be reduced, prompting some companies to reactivate shelved projects and reopen merger and acquisition talks.

    Australia's Prime Minister Julia Gillard agreed on a compromise plan that would reduce the planned tax to 30% of profits from iron ore and coal, and 40% tax on oil and natural gas, down from the originally proposed 40% tax on all resources. The new plan, called the mineral resource rent tax, would also raise the tax's trigger level to profits that exceed a 12% rate of return instead of 6%.

    "The reduction in the headline rate is an amazing concession," John Robinson, chairman of Global Mining Investments Ltd., told Bloomberg. "It's certainly better than I had expected."

    Read More...
  • Oil Prices Set to Soar in the Second-Half of 2010 Oil prices hit a wall this spring. But don't be fooled. The spring retreat simply set the stage for a second-half rally. Despite lingering fears over the global economy, demand for oil isn't slowing down at all. In fact, it's rising... and oil prices will rise right along with it. Read this report to find out why oil is poised to take off in the next six months... and how you can profit. Read More...
  • Oil Prices: Two Ways to Profit From 'Peak Oil' If there's one thing U.S. investors need to know about the future, it's this: Oil prices are headed higher - much higher, in fact, and could well double to reach $150 a barrel.

    And if that's what the future holds, you may as well go along for the ride...

    For a glimpse of this "peak oil" future, please read on...

    Read More...
  • Money Morning Mid-Year Forecast: Oil Prices Down but Not Out While it looked like they were headed towards the $90 a barrel level, oil prices hit a wall in the spring. Rattled investors who worried about the direction of the global economy shunned black gold in favor of real gold as a means of preserving capital.

    But don't be fooled. The spring retreat simply set the stage for a second-half rally.

    After starting the year at about $81 a barrel, prices climbed as high as $86 a barrel before plunging to $64 on May 25.

    Read More...
  • The Airline Industry: How to Make Good Money From a Bad Business After years of off-and-on conversation, UAL Corp.'s United Airlines (NASDAQ: UAUA) is getting into bed with Continental Airlines Inc. (NYSE: CAL) in a merger deal valued at $3.7 billion. The merged entity, keeping the "United" name, will be the largest airline in the world. It will have close to $30 billion in combined revenue, 700 aircraft, and service to 370 destinations in 59 countries, according to BusinessWeek. Early estimates predict savings to reach $1 billion to $1.2 billion annually.

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  • High Oil Prices: Four Ways to Profit From the Looming Zoom Let's face it: Over the long haul, oil prices are headed higher -probably much higher. For U.S. consumers, high oil prices will represent a major challenge. For investors, however, those same high oil prices could stand as the profit opportunity of a lifetime. Read this report from Money Morning Executive Editor William Patalon III, and find out how high oil prices could shoot your portfolio to new highs. Read More...
  • Decline in U.S. Natural Gas Imports is Causing Panic in Leading Exporting Nations The world 's biggest natural gas exporters met today (Monday) in Algeria and agreed to index gas prices to oil as shrinking U.S. natural gas imports are causing a global supply glut.

    "All ministers agreed and supported that we continue our efforts to achieve indexing gas to oil," said Russian Energy Minister Sergei Shmatko.

    The Gas Exporting Countries Forum (GECF) members include Russia, Iran, Qatar and eight other nations that hold two-thirds of the world 's gas reserves. They 've watched gas prices fall nearly 50% in the past two years. Current gas prices of $4 per million British thermal unit (BTU) are about 20 times lower than oil, but are usually around 10 times lower than oil.

    U.S. natural gas prices have fallen 28% since December as an increase in the U.S. shale rock gas supply has reduced the need for U.S. natural gas imports. Shale rock gas is retrieved from tight rock formations and its U.S. boom led the country to extract more gas than Russia last year for the first time since 2001.

    Russia 's energy giant Gazprom has a five-year plan to take 10% of the U.S. natural gas market share, but U.S. shale gas exploration has put a damper on that goal.

    "The influence of shale gas raises the prospect of change on gas markets," Russian Natural Resources Minister Yuri Trutnev told Reuters. "We have a problem with shale gas. This is not only my position, but the position of Gazprom as well."

    As the United States becomes a less reliable consumer, gas suppliers aren 't having much luck replacing the lost business.

    Read More...
  • Oil Prices On a Tear and Headed Higher Oil prices are at their highest level in more than a year and a half and are likely to head even higher as the global economy bounces back from recession.

    Benchmark crude for May delivery rose $1.75 to settle at $86.62 a barrel on the New York Mercantile Exchange (NYMEX) Monday. That followed gains of $1.11 a barrel on Thursday and $1.39 a barrel last Wednesday.

    In all, prices are up over 5% since last week and over 70% since April 2009. And right now oil is trading at its highest level since Oct. 8, 2008, when crude settled at $88.95.

    Read More...