Best oil ETFs to buy now: Crude oil prices have dropped to their lowest prices since 2009, falling below $50 a barrel this month, after reaching $115 a barrel in June.
But Money Morning's Global Energy Strategist Dr. Kent Moors says oil prices are near a bottom, and will rebound in 2015.
"As the most fluid commodity in the world, crude oil has the ability to quickly self-correct, which is why longtime oil veterans aren't worried about falling prices,” Moors said. "In fact, the vast majority of them (including myself) actually expect oil prices to climb next year."
Big-name oil stocks have taken a beating since June.
ExxonMobil Corp. (NYSE: XOM) is down 12.6% in the last seven months. Other oil giants like Chevron Corp. (NYSE: CVX) and ConocoPhillips (NYSE: COP) are down 18% and 22.8% in the same time.
But according to Money Morning's Chief Investment Strategist Keith Fitz-Gerald, the fall won't last forever.
Oil prices continued to fall this week but stock markets shrugged off the disarray this continued to cause in global markets after Janet Yellen whispered soothing words in their ears after the Fed's last meeting of the year on Wednesday. Mrs. Yellen has become a "bull whisperer" - fearful of upsetting the equity market, she cloaks her words in indirection and equivocation in an effort to keep them calm as she prays for an economic lift-off that will take her institution off the hook.
Unfortunately, her patient is likely to be very disappointed, for it would take an economic miracle the likes of which hasn't been seen in this country since the years after the Second World War to deal with the mountain of existing debt and future liabilities that are going to bury us.
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.
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%.
Falling crude oil prices are highlighting some great buying opportunities.
Our technical trading strategist weighed in on Bloomberg Radio, and offered his recommendations amid falling energy prices.
The price of oil has slipped consistently since June, dragging most oil stocks down with it.
In June, West Texas Intermediate (WTI) hit a three-year high of $103.66 per barrel. By Tuesday, it closed at its lowest price in more than three years, at $77.19.
Making money in the energy sector is no longer pegged to higher crude oil prices. In today's environment, it's more about where a company drills, how it manages its assets and operations, and the broader flow of supply and demand.
It's also about selecting companies that are built to weather the inevitable dips in the price of crude.
They called the Permian Basin the mother of all busts and buried it three decades ago - but they couldn't have been more wrong. Today, 27% of all of the oil rigs in the United States are currently operating in the Permian Basin.
Chesapeake Energy Corp. (NYSE: CHK) stock closed up nearly 0.5%, despite the fact that the company reported a net income loss of 67% compared to the previous year.
CHK reported Q2 net income of $0.22 per share, which was down from $0.66 per share in the same quarter last year. Excluding one-time items, earnings per share (EPS) was $0.36. That was down from the $0.44 per share analysts polled by Bloomberg had anticipated.
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.
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.
The Bakken Shale formation of North Dakota and Montana was back in focus for investors earlier this week when Whiting Petroleum Corp. (NYSE: WLL) announced plans to purchase Kodiak Oil & Gas Corp. (NYSE: KOG).
Through the deal, WLL will pay $3.8 billion in stock and $2.2 billion in debt. The combined company produced over 107,000 barrels of oil equivalent in the first quarter of 2014.
But WLL isn't the only company profiting from the Bakken Shale.