Oil Prices

Crude Oil Prices and the Coming of the Second Arab Spring

arab egypt crowd

During the first Arab Spring, some countries were able to avoid the unrest by buying off their populations with goodies. But today in those countries, unemployment is increasing and alternatives to centrally subsidized survival are disappearing.

That's because this untenable balance has been sustained by the price of oil. As long as oil flowed, net outflows from the national coffers could be sustained.

Falling crude oil prices mean that balance is ending - and the prospect of renewed violence is making a big comeback.

Oil Price Forecast 2015 Brings One of the Best Opportunities in Years

oil price forecast 2015 graphed

Oil Price Forecast 2015: After hovering around $110/barrel for the first eight months of the year, oil prices have tumbled by 45% into the $60 to $65/barrel range.

In fact, in mid-December, oil prices dipped as low as $56 a barrel, a level not seen since May 2009 during the worst of the "Great Recession."

But according to the 2015 oil price forecast by Money Morning Global Energy Strategist Dr. Kent Moors, the worst of the price crash is likely over.

"Oil," Dr. Moors says, "is very near a bottom."

Now here's how investors can profit...

OPEC News: Collapse of the Cartel Is Near

opec news

There's more OPEC news today after the 12-nation oil cartel announced again that it will not be cutting production in the face of falling oil prices.

According to Money Morning's Global Energy Strategist Dr. Kent Moors, these actions will spell the end of the cartel. You see, OPEC is fighting a battle it simply can't win.

Here are the three major reasons we're about to see the end of OPEC...

The Rushing Bear Market and How to Prepare

bear-trap

Oil prices plunged to their lowest prices in five years last week after the International Energy Agency (IEA) downgraded its forecast for global oil demand for the fifth time in six months.

The IEA report told markets that global growth will remain weak in 2015, triggering an across-the-board sell-off in stocks and junk bonds on Friday that left the major indices with some of their worst percentage losses in three years.

Unfortunately, stocks are still trading within a few percentage points of record highs reached only a week ago and remain severely overvalued in the context of seriously deteriorating economic fundamentals.

Investors that were complacently expecting stocks to melt up to "Dow 18,000" and "S&P 2,100" by year-end are now facing a the much grimmer reality of a correction and even the potential of a bear market in 2015.

Low Oil Prices: Setting the Stage for the Next Big Move

low oil prices

While public attention remains fixed on OPEC, crude pricing, and the impact on American tight and shale oil production, I've been focused on the next stage.

The one where the guys with the big bucks make the even bigger bucks.

It's the "next financing sequence," and it will unfold based on three interlocking developments...

This Crude Oil Chart Shows Which Countries Are Reeling

crude oil chart

This crude oil chart shows just how hard the steady oil price slump has hit OPEC countries.

Oil is the foundation of OPEC countries' economies. Their budgets feel a tremendous strain when crude oil prices fall as dramatically as they have.

Brent oil for January delivery traded at $64.59 at noon today (Thursday). That's a drop of more than 41% from the $110 mark Brent hit in June.

Crude Oil Prices Today Approach Historic Bear Market Level

Crude oil prices today

Crude oil prices today (Wednesday) plummeted again after the U.S. Energy Information Administration (EIA) reported an increase in U.S. oil supplies.

The EIA reported that U.S. supplies were up by 1.5 million barrels in the week ending Dec. 5. Analysts had been expecting a drop of 3 million barrels.

With oil prices at $60.63, we're quickly approaching the third-largest bear market for oil in the last 30 years...

Crude Oil Price Chart: This Is the 4th-Largest Drop in 30 Years

crude oil price chart

West Texas Intermediate (WTI) crude oil dropped to $63.38 yesterday (Monday). At that level, the price of oil is now down more than 42% since September of 2013.

As this crude oil price chart shows, that's the fourth-largest bear market for oil in the last 30 years.

And while this isn't the biggest drop for oil, it is the longest bear market among the top five dips.

Here's the full story...

How to Invest When an "Unstoppable Trend" Seems to Be Over

how to invest

Keith Fitz-Gerald knows how to invest in the energy sector. He says it's still minting millionaires.

But right now, with oil prices so low, mainstream investors are too caught up in the short term.

But current oil prices are actually a big "green light" for investment, not a big red stop sign -- here's how to play it...

OPEC Oil Price War Won't Be Successful

OPEC Oil Price

In a highly publicized meeting last month, OPEC announced it would maintain high production levels in an attempt to disrupt U.S. shale oil producers.

But the OPEC oil price war simply won't work says Money Morning's Global Energy Strategist Dr. Kent Moors. He's been meeting with some of the world's top oil policymakers in Dubai this month and has been analyzing OPEC's strategy.

Moors appeared on Bloomberg TV in London this morning (Monday) and explained why OPEC is fighting a losing battle. He also detailed what the fair market price for crude oil is right now...

Stock Market Futures Down Today on New Oil Price

Stock market futures

Good morning! Stock market futures today forecast a 59-point decrease from Friday's close on concerns about growth in Japan and a lackluster oil price forecast.

What to watch today: Investors will keep an eye on oil prices after Morgan Stanley (NYSE: MS) slashed its oil forecast through the year 2019. The investment bank predicted that the global energy markets would hit its oversupply peak in the second quarter of 2015, fueled by OPEC's decision not to reduce production.

Here's the other stock market news you need today - including your "Money Morning Tip of the Day" - to make it a profitable Monday...

Crude Oil Prices and the Coming Fall of OPEC

Crude Oil Prices

Every 10 or 20 years a series of watershed events come together that change the face of the international energy picture.

The Saudi-led war on crude oil prices is one of these pivotal situations.

And while others fret about what the OPEC production move means, I'm actually meeting with the guys who made the decision.

I can tell you that what's unfolding here in the desert will have a decisive impact on producers, end users, and government/corporate policymakers worldwide.

Of course, I've been involved in a fair share of all of this for over 40 years, from both the public and private sector side.

Much of that is coming together in my current slate of meetings with some of the most powerful people in the energy world.

What I learn in these gatherings will allow everyday investors to make some heavy money as these pivotal changes kick in...

Why Bakken Shale Stocks Will Continue to Get Crushed

Bakken shale stocks

Crude oil prices have fallen precipitously for five straight months. Since June, West Texas Intermediate (WTI) has dropped 29.3%.

And Bakken Shale stocks have been taking the brunt of that price collapse.

But low oil prices aren't the only problems for Bakken shale stocks. In fact, there are three major problems with Bakken oil that are getting worse because of falling prices...

The Economic Fallacy of Lower Oil Prices Will Hit Consumers Right Here…

oil prices

Media elites and Wall Street cheerleaders are greeting lower oil prices with open arms. 

Investors should beware these self-appointed experts bearing gifts.

Oil prices are falling for reasons that should be surprising to nobody: supply has been rising and demand has been falling.  If prolonged, which it is likely to be, the drop in oil prices is going to be destabilizing geopolitically and damaging economically. 

For those who want to believe in a magical economic rebirth as the price of oil falls, well, good luck with that.

My view is distinctly different, and it demands we look at the whole economic picture as it is, not as others want. It's time for some hard truths...

What's Next for Crude Oil Prices and Stocks After OPEC Meeting

crude oil prices

Last week's OPEC meeting in Vienna, Austria, was billed as the most important gathering of the cartel in years, with huge implications for crude oil prices.

The meeting's importance was felt almost immediately. After OPEC nations announced they would not cut oil production, oil prices plummeted. WTI crude oil is now down 37.8% from June and Brent oil is down nearly 40%.

Here's what investors can expect from oil prices moving forward, and the best strategy for oil stocks now...

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