Category

Oil

Oil

How the Saudi Oil Attacks Will Impact Crude Prices

By , Director of Research, Money Morning - • Print | Email

Investors on Monday digested news of the massive drone attacks on Saudi Arabian oil infrastructure at Abqaiq and Khurais. Stocks took it pretty well, it has to be said; the Dow slid around 0.27% as an "oil shock" that would've sent indexes tumbling hundreds of points 10 or 20 years ago rippled through the broader markets.

Oil, on the other hand, is seeing virtually unprecedented volatility. Prices for crude have jumped by as much as $10 a barrel following the disruption of around half of Saudi Arabia's daily output. Prices then lurched lower yesterday when Saudi Energy Minister Prince Abdulaziz bin Salman suggested oil supply will be back online by the end of September.

As we'll see in a second, the ground reality is probably more complicated than that, and traders are still deeply conflicted about the big picture.

And in the chaos and conflict roiling the oil markets right now lies a once-in-a-generation opportunity for investors...

Oil

What Every Investor Needs to Know About the Saudi Arabian Oil Attacks

By , Global Energy Strategist, Oil & Energy Investor • @KentMoors_OEI - • Print | Email

I was still in the air with my wife, traveling between Dubai and our home in Florida, when some of the world's most important oil production and processing facilities in Saudi Arabia were attacked by drones.

By the time we landed, the massive Saudi Aramco processing facility at Abqaiq and the Khurais oil fields were burning, around 7% of global daily crude production was falling offline, and global crude prices were spiking by double digits.

At home, before I even had a chance to unpack, I participated in a marathon series of overseas conference calls which have only just ended.

With the attack, claimed by Houthi rebels out of Yemen, the long-simmering Saudi-Iranian proxy war has reached a new, volatile boil.

Frankly, White House rhetoric notwithstanding, Saudi Arabia's next steps will largely determine when and where outright war breaks out.

I can say with certainty, however, that U.S. and Saudi government responses to the global oil market have missed the mark.

Here's what's really happening...

Energy

Why You Don't Need $10 Billion to Make Deals Like Warren Buffett

By , Money Morning - • Print | Email

A chief perk of Berkshire Hathaway's (NYSE: BRK.A) recent $10 billion investment in Occidental Petroleum Corp. (NYSE: OXY) is the fat 8% dividend.

There's a catch to receiving it, though: you have to be Warren Buffett. But there's a very similar, overlooked energy investment that can provide any investor the same perks as Buffett's Occidental strategy.

In fact, they're nearly identical plays...

Options

[CHART] Crude Oil's Dip Is Priming the Pump for This Triple-Digit Options Play

By , Money Morning - • Print | Email

Crude oil has gotten a lot of headlines over the past few weeks, sparking big moves in the oil market.

WTI crude oil prices surged over 45% higher this year, before dipping 5% over the last month.

Fortunately, there is a way to directly profit from the dip in oil prices, and we don't mean storing a few dozen barrels of black gold in your garage...