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price of oil

Saudi Arabia May Have Just Shot Itself in the Foot

oil prices

Another Saudi official is trying to downplay the kingdom's expanding deficit - as their problems get worse...

On Saturday, Foreign Minister Adel al-Jubeir maintained that the current situation was manageable. He was speaking at a conference in Manama, the capital of neighboring Bahrain.

The situation, of course, has been sparked by two Saudi-led decisions within OPEC. The first was to defend global market share by keeping production high (a move made last year while Americans were sitting down to their Thanksgiving turkeys). That started a downward slide in global oil prices.

Today, I'll show you why the wealthiest OPEC nation's situation has gotten worse - and look at the two recent developments that could accelerate the problem...

5 Surprising Ways Oil Prices Affect Our Everyday Lives

oil prices

The effects of oil prices are more far-reaching than most people realize.

That's because petroleum permeates nearly every corner of our economy.

For example, just recently it was revealed that low oil prices were going to hurt elderly Americans in particular. Last week, the federal government announced it will not increase the cost of living adjustment (COLA) for fiscal 2016 due to low gas prices.

Here are four other less-considered ways the price of oil impacts our lives...

What the Fed's "Hold" Means for Crude Oil Prices

fed decision

The nine years of historically low interest rates will continue in the wake of Fed Chairwoman Janet Yellen's decision to not hike rates - to not yet remove the proverbial punchbowl from the easy-money party.

It was a classic "50-50" proposition; it didn't seem likely the Fed would move to roil global markets, but given the perceived strength of the labor market, a hike wasn't out of the question.

Before Yellen decides to pull the trigger, we'll see price volatility spiral across all global markets - especially when it comes to crude.

So now the oil "doom and dread" crowd and their bearish predictions are running rampant.

Here's why they're dead wrong...

Why Are Gas Prices So Low?


Why are gas prices so low right now?

The average price of regular unleaded is hovering around $2.40 a gallon - almost a dollar less compared to a year ago.

Here's a look at what's responsible for the lower prices we're seeing at the pump these days...

Oil's Tumble Means a Fast 30% Gain with This Trade

8 4 15 TG2

My wife and I were just at a children's birthday party. You know, the kind where everyone gets together to sing "Happy Birthday," and then the adults drift off into their own groups to chat.

Naturally, I fell in with a group of several wealth managers, and you'd better believe we started talking about the markets.

When the subject turned to oil shares, you could have heard a pin drop.

You see, some of those folks could be looking at a mighty lean year, depending on their oil exposure.

But as we know, there's an opportunity to make money as share prices fall. Today I want to show you how to book a quick and easy 30% gain on some very big, very liquid oil shares, even as the stock tumbles down.

It's the perfect energy play for markets like this...

The Four Real Reasons Oil Prices Are Slipping


Oil prices are declining once again. Small oil operators are hurting. Throughout the decades, these small E&P outfits have endured market downswings, vicious weather, and profit constrictions.

But this year all these crises have come at once.

Here's why the price of oil is slipping out of control...

OPEC Shorts Are Driving Down the Price of Oil

oil prices

The conflict between OPEC and U.S. shale/tight oil producers has entered a new phase. And the result has been an accelerated decline in the price of oil.

There is excess supply on the market and a correction has been in order even without the latest OPEC move.

Here's our take on the international scheme to keep oil prices down...

Why This Week's Market Overreaction Won't Affect Energy Demand


Some days you just want to crawl back into bed and pull up the covers. Wednesday was certainly one of them.

Greece has until Sunday to be saved from financial oblivion, and the Chinese stock market looks like it has come unglued. On top of these crises, the New York Stock Exchange stopped trading for over three hours Wednesday because of a "technical" glitch.

But none of this will have any effect on energy demand. Here's why...

Beat Canada's Oil Revenue Grab with This Investment

oil revenue

"The Greatest Outdoor Show on Earth," the century-old annual Calgary Stampede rodeo and festival, has just gotten underway. But while a million-plus visitors enjoy all the city has to offer, all is not well for petroleum companies in the city dubbed Canada's oil headquarters.

A few short months ago, a forty-four year political dynasty came to an end, as the oil-rich Canadian province of Alberta elected a left-wing government that wants to extract more revenue from energy companies.

Here's one...

How to Invest in the New Energy Balance

higher oil prices

As we await the next chapter in the ongoing Greek debt mess, something of interest is happening right here in the U.S.

For the first time in my memory (which goes back more than four decades in this business), the energy market's normal supply-and-demand trade-off has been fundamentally altered.

As I have explained on several occasions in Oil & Energy Investor, overleverage will hamper some U.S. producers, while the inability to replace volume extracted due to the expenses incurred exceeding the wellhead profits will cause significant problems for others.

Here's where the best opportunities are going to arise...

Why I'm Revising My Oil Outlook… Upward

Dow futures

I just left a closed-door meeting in Paris. Assembled here were some high-powered oil practitioners, the traders selling their productions, and the bankers financing all of it.

As often happens, the pundits and talking heads have been discussing matters quite similar to what was on our agenda. And as usual, their perspectives are very different from those of us "behind the scenes."

For some time I have been talking in Oil & Energy Investor about a confluence of factors leading to a rise in oil prices. It was heartening to see I was right according to those assembled in my meeting - except for in the case of one interesting factor.

Why the Price of Oil Is Baffling Analysts (but Not Us)

price of oil

It sure has been amusing to watch the instant oil experts trying to shove their "square peg" explanations into the "round hole" price of oil this week.

So why do these analysts keep getting it wrong? Is it because they have vested interest in oil falling for short plays?

Maybe. But there's another force afoot as far as the price of oil is concerned...

Debunking the Newest Oil Price Myth

oil price

We've seen massive shifts in crude oil prices in recent weeks.

Of course, this has brought back some rather specious arguments by talking heads on TV and pundits spinning the next Armageddon scenario.

The latest is about how rising oil prices will prompt more volume to come online from a particular type of well (called DUCs), sending oil into another tailspin.

I'll deal with that in a minute but first let's address those pundits...

Why Alternative Energy Isn't Taking It on the Chin (Despite Low Oil Prices)

oil prices

When oil prices decline, there's always an inevitable uptick in demand. The reason for this is simple: Markets tend to use more of a cheaper product. After all, when prices at the gas pump are low, a family trip across the country is much easier to plan.

This increase in oil demand has historically caused other forms of energy to stagnate.

But that just isn’t the case with the alternative energy market this time...

3 Charts Show How Overvalued Some Oil Stocks Have Become

oil prices

The price of oil has climbed sharply in the last month. As of April 17, futures of WTI oil were priced as high as $56.81. That's a gain of more than 29% from their $44.03 bottom from mid-March.

Investors trying to play rebounding prices have flooded into oil stocks in the last month.

But investors trying to buy in now are looking at highly overvalued stocks. And these three charts show why...