price of oil

Crude Oil Prices Today: The Other Side of the "Glut"

oil barrels

The pundits continue to hawk the same reasons for the fall in crude oil prices today.

These are always "spearheaded" by comments about surging global supply led by the onslaught of unconventional (tight and shale) oil production in the United States.

Invariably, what's missed by these "TV sages" are the pricing dynamics kicking in that virtually guarantee an increase in oil prices as we move into 2015.

Just take a look...

Stock Market Futures in the Green While Oil Slides Another 3%

Stock market futures

Good morning! Stock market futures for Tuesday, Jan. 13, forecasted a 74-point gain over yesterday's close. In the last session, the Dow Jones plunged 96 points after crude oil prices crashed more than 4%.

Today, investors will react to the kickoff of earnings season. Watch for reports from KB Home (NYSE: KBH), Kinder Morgan Inc. (NYSE: KMI), and CSX Corp. (NYSE: CSX).

Here's what else you should know about the stock market today - including your "Money Morning Tip of the Day" - to make it a profitable Tuesday...

Current Crude Oil Prices: $50 "Limit" for Brent

current crude oil prices

Current crude oil prices in the United States were on pace for a two-day winning streak Thursday amid modest gains.

In early afternoon trading, WTI prices were up $0.04, or 0.08%, to $48.69 a barrel. Brent crude, meanwhile, was lower by $0.25, or 0.49%, to $50.91 just after noon.

Here's a closer look at today's oil prices - as well as why the current oil price story is still ugly, at least for now...

Today's Oil Prices Spell Profit for These Energy Players

today's oil prices

Getting started this year took a bit longer than usual.

When I returned home from the Bahamas, I had to hook up an entirely new system of computers and peripherals. To top it off, everything is in a new version of Windows.

Talk about a monopoly! After a few beers, I would be happy to tell you what I really think of it.

Finally, things are now getting back to normal.

Of course, the oil price "Grinch" is still with us. He outstayed his welcome weeks ago, but with the shorts still driving oil prices lower he's decided to extend his stay.

And as the first two trading sessions this week have shown, the instability in the energy sector remains as well.

But as I'll show you, it's not all bad news.

For one portion of the industry, lower oil prices actually mean higher profits...

2015 Oil Prices Won't Change the Emerging U.S. Dominance

Stock market today

My recent meetings in Dubai highlighted the profound change that will turn the balance of power in the energy industry on its head.

For years, OPEC was the puppet master, and the United States (and the rest of the world) were the puppets. They pulled the strings, and we danced. OPEC set the price of oil. OPEC controlled the supply.

But those days are ending. After dictating the course of oil prices for more than 50 years, OPEC is finding its influence diminished.

OPEC's oil ministers can read the handwriting on the wall as well as anyone. Not only are they about to lose the largest energy market in the world, but they'll soon be competing for the markets that used to be theirs for the taking.

Because in 2015 the United States will start pulling the strings...

The Damage Caused By the Oil Bear Will Spread Far and Wide

crude oil prices

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.

Full Story

Oil Prices: Black Swan or the Work of Vultures?

oil prices

Over the past few of days, three separate prognosticators have claimed the fall in oil prices is a "black swan" event - in other words, an outlier, a development that fails to follow any normal pattern.

This isn't a black swan, but calling it one may be a good way of clouding up what really is happening.

In this case, there's another motive at work - and the black swan becomes a convenient cover...

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.

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...

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...

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