The prospect for oil prices in the near future looks significantly more positive. By the end of the second quarter or shortly thereafter, we believe oil prices will rise.
This is despite the recent monthly report released by the International Energy Agency (IEA) that projects a more prolonged oil glut than initially forecast.
The prospect for oil prices in the near future looks significantly more positive. By the end of the second quarter or shortly thereafter, we believe oil prices will rise.
This is despite the recent monthly report released by the International Energy Agency (IEA) that projects a more prolonged oil glut than initially forecast.
Here is what the IEA got wrong...
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.
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.
While public attention remains fixed on OPEC, crude pricing, and the impact on American tight and shale oil production, I've been focused on the next stage.
The one where the guys with the big bucks make the even bigger bucks.
It's the "next financing sequence," and it will unfold based on three interlocking developments...
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.
Crude oil prices made a sharp reversal today on two new developments ...
After two punishing days of declines, the price of oil jumped nearly $2 a barrel shortly after 11 a.m. following unconfirmed reports of an oil explosion in Saudi Arabia.
But the real story is the recent Saudi oil price cut and what it means for U.S. oil producers...
Oil prices slipped below $93 a barrel Tuesday, continuing a downward trend that started early last month.
Last week, oil prices fell 0.76%, logging a sixth weekly decline, the longest string of losses since 1998. Volume also slid, with futures roughly 41% below the 100-day average.
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