Oil Prices

Big Oil, Big Headaches, and Big Opportunities

By , Special Contributor, Money Morning - • Print | Email

stocks to buy

A three-day rally in crude prices last week is giving investors hope that the collapse in oil prices is over, and the market is reacting with strong moves to the upside in "Big Oil" stocks.

However, it may be too soon to draw either a correlation or conclusion; oil inventories and futures markets suggest that oil prices could easily head back down before stabilizing later this year (we saw a glimpse of this early Wednesday).

The share price drops have significantly affected the "Oil Patch" sector, with the Energy Select SPDR ETF down 26% since peaking at $100.93 on June 20, 2014.

Is an oil price rally for real, or just a head-fake we need to ignore for now?

The answer may just surprise you - and help you profit...

Why the DJIA Rose Today – 305-Point Gain

By , Economist, Money Morning - • Print | Email

Why the DJIA rose today

The DJIA added another 305 points Tuesday. The cause? Oil prices surged once again.

Higher energy prices helped Caterpillar Inc. (NYSE: CAT), Exxon Mobil Corp. (NYSE: XOM), and Chevron Corp. (NYSE: CVX) all jump more than 2.5% on the day.

Soaring auto sales and hopes for a Greek debt deal also lifted stocks today.

Here's a closer look at why the DJIA rose today -- plus our new tip for investors...

Why the Price of Oil Is Surging – in One Picture

By , Associate Editor, Money Morning - • Print | Email

price of oil

The price of oil is still on the rise today (Tuesday). As of 12:35 p.m. GMT (7:35 a.m. EST) today, Brent traded at $56.38 a barrel, a nearly 3% gain from its previous value.

That puts Brent oil up 14% since last Friday (Jan. 30). And on that day, Brent surged 8% - its biggest one-day gain since 2009.

WTI crude traded this morning at $50.88, up roughly 2.6% since Monday night.

Oil prices are surging for one reason, and this picture says it all...

Dow Jones Drops 251 Points Friday as Oil Prices Surge

By , Economist, Money Morning - • Print | Email

Alibaba stock price

The Dow Jones fell 251 points today. The cause? An afternoon oil-price surge caught the market off guard.

West Texas Intermediate crude jumped 8% in New York after Islamic State militants attacked Kurdish forces near the oil-rich city of Kirkuk and news emerged that the U.S. rig count, an indicator of forward production, slipped by 7% this week.

Here are the other top stories from the stock market today - plus today's profit tip for investors...

This Oil Chart Shows the Real Global Oil Supply Story

By , Associate Editor, Money Morning - • Print | Email

Oil chart

Pundits continue to emphasize global supply as a major problem for oil prices, but a look at this oil chart shows those concerns over supply are overstated.

There's no denying global oil supply is on the rise. In 2014, the U.S. Energy Information Administration (EIA) reported oil inventories increased 0.8 million barrels a day (bpd). In 2015, that could grow to 0.9 million bpd if production remains the same.

Talking heads say that's a sign oil prices will continue to slip. But they're missing the point.

Here's the proof that oil supply talk has been overstated...

Stock Market Futures Forecast 147-Point Decline, Shake Shack Makes NYSE Debut

By , Economist, Money Morning - • Print | Email

Stock market futures

Good morning! Stock market futures for Friday, Jan. 30, forecasted a 147-point decline from yesterday's close. The Dow Jones gained 225 points on Thursday on strong earnings reports from a number of Blue Chip companies and an upswing in oil prices.

Today, markets will focus the fourth-quarter GDP estimate - the broadest measure of aggregate economic activity that covers every sector of the economy. Analysts anticipate growth of roughly 3.1%. That's a decrease from 5% in the third quarter of 2014.

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 Friday...

The Last Time U.S. Gas Prices Were This Low…

By , Associate Editor, Money Morning - • Print | Email

gas prices

Gas prices across the nation are on track to sink below $2 a gallon by the end of January for the first time since March 25, 2009.

Twenty-five states and more than 50% of U.S. gas stations averaged sub-$2 a gallon gas prices on Jan. 20 according to AAA. The average U.S. gas price could fall to $1.95 - or even lower - "over the next few weeks."

And so for the first time in almost six years, many American motorists will joyfully watch local gas station prices tick under $2. They'll also save an estimated $750 on average at the pump in 2015 compared to last year, according to GasBuddy.

In fact, the last time gas prices were this low...

Saudi Dynasty After King Abdullah: A Visual Guide

By , Associate Editor, Money Morning - • Print | Email

Saudi dynasty prince mohammed

Saudi King Abdullah bin Abdulaziz passed away late Thursday at age 90 after a short illness. His death triggered the biggest challenge to the Saudi dynasty in 50 years...

You see, the founder of the Saudi state, King Abdulaziz ibn Saud, decreed only that his first son would inherit the throne. Over the six decades that have followed King Abdulaziz ibn Saud's rule, succession has passed from brother to brother, almost always in order of their age.

But the last of the current line of 35 brothers will soon die out completely.

That means for the first time in Saudi history, the throne will be passed to the third generation of the family...

SBUX, DWA Big Movers in the Stock Market Today

By , Economist, Money Morning - • Print | Email

Stock market today

Stock market today, January 23, 2015: Stock market futures for Friday, Jan. 23, forecasted a 46-point decline from yesterday's close.

The S&P 500 and Dow Jones Industrial Average (DJIA) soared Thursday on news the European Central Bank (ECB) has launched a massive QE bond-purchasing program. The U.S. dollar hit an 11-year high against the euro on the news.

Today, investors will continue to celebrate the stimulus plans of the ECB. They'll watch for earnings reports from a number of high-profile American companies.

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 Friday...

About Money Morning

Money Morning is here to help investors profit handsomely on this seismic shift in the global economy. In fact, we believe this is where the only real fortunes will be made in the months and years to come.

Each weekday morning, in a readable style you can digest in just a few minutes, you will reap the benefits of our research and expert experiences.

© 2015 Money Map Press. All Rights Reserved. Protected by copyright of the United States and international treaties. Any reproduction, copying, or redistribution (electronic or otherwise, including the world wide web), of content from this webpage, in whole or in part, is strictly prohibited without the express written permission of Money Morning. 16 W. Madison St. Baltimore, MD, 21201, Email: customerservice@MoneyMorning.com