Category

Oil

Oil

[CHART] Why We're Doubling Down on Crude Oil

It's no secret oil prices have taken a beating over the last two months. WTI crude oil plummeted 24% from $75 a barrel in October to $57 a barrel today.

Normally, a collapse like that would send oil investors into a panic. And sure, a few media personalities are acting hysterical.

It's no secret oil prices have taken a beating over the last two months. WTI crude oil plummeted 24% from $75 a barrel in October to $57 a barrel today. Normally, a collapse like that would send oil investors into a panic. And sure, a few media personalities are acting hysterical.

Oil

The Shocking Role of Iranian Sanctions in Crude Oil's Plunge

The collapse in oil prices has now reached historic levels.

Tuesday's 7% plunge in West Texas Intermediate (WTI) – the largest slump in more than 30 years of futures contracts – marked the 12th consecutive daily loss for the New York benchmark. Before rebounding slightly yesterday, crude had been down more than 22% in less than a month.

Now, we've spoken many times before about the numerous reasons why crude prices can plunge: artificial manipulation from short sellers and institutional monkeyshines, geopolitical tensions, distortions in supply and demand, even outright oversupply – we've seen it all before. 

In this present case, some of this current decline is warranted, given the market's overestimation of Iranian sanction impacts and, to a far lesser extent, some weakening in underlying fundamentals.

But to be sure, the leading cause of the plunge has been a combination of what I have called the "lemming fixation" (a penchant for jumping off the cliff en masse) and some outright market manipulation.

I'll have more to say on this shortly, in a more extensive analysis my team and I are preparing right now.

But it's the completely counterintuitive - yet entirely predictable - effect of the recently re-imposed sanctions on the Islamic Republic that I want to explore today...

stocks

Double Your Money Now That the United States Is the World's Largest Oil Producer

For the last 45 years, Russia and Saudi Arabia have dominated global oil production. However, U.S. production is roaring back – and rewriting the international balance in the process.

Last week, the U.S. Energy Department announced that the United State surpassed Russia and Saudi Arabia to become the world's largest oil producer for the first time since 1973.

America's stunning rise to the top of the production field has fostered the next catalyst to generate a triple-digit return for investors.

stocks

This Oil Pipeline Stock Could Jump 116% Thanks to Booming Production

After years of subpar performance, North American Oil Production is back.

According to a report published by the U.S. Energy Information Administration last week, U.S. oil production rose to 10.7 million barrels a day in June.

This is the latest jump in what has turned into a two-year rally for a beleaguered North American oil industry.

And it shows no signs of letting up - June's numbers put the U.S. on track to reach a record 11 million barrels a day before the end of the year.

Oil

One of My Favorite Drillers Is Set to "Strike It Rich" All Over Again

The Delaware Basin in arid western Texas and southern New Mexico used to be a good deal more inviting than it is today.

In fact, around 300 million years ago, when the region was south of the Equator, the area was a lush, tropical reef teeming with Permian life, covered by the warm Delaware Sea, which was part of the ancient Panthalassa Ocean.

Nowadays, the fossilized remains of that reef are exposed in the hot desert air, and the once-aquatic landscape has given way to scrub and the national parklands of Carlsbad Caverns and the Guadalupe Mountains.

The area is also known for its vast, thick deposits of limestone…

… and shale. Virtually endless expanses of oil-rich shale – wellspring of the second American energy revolution.

And one company is in the perfect position to reap the rewards of this ancient treasure...

Oil

American Shale Oil Is Minting a New Class of Millionaires

We've seen the term "disruption" everywhere in the media for the past few years.

Ride-sharing company Uber disrupted the taxi industry. Amazon.com Inc. disrupted most of retail and moved into groceries and streaming services. And when you think about it, Ford Motor Co. disrupted personal transportation a century ago when it replaced the horse and buggy with motor cars.

Now, we're seeing a disruption of American shale oil. And it's creating a whole new class of millionaire investors...