Thursday, July 10, 2014

OIL UPDATE

                                           t. man hatter
                                         
A while back we wrote an update on energy, specifically oil, and we suggested there would be a pullback creating opportunity.

At the time oil was trading near its recent highs. Given all the global turmoil--Iraq, Gaza, Ukraine, Nigeria, the South China Sea, to name a few, one would expect the opposite. True, the Iraqi situation seems to have cooled a bit as oil from there continues to flow while the Ukraine appears set for a showdown and Libya cranked up it pumps again.

None of this means the globe's bad actors have exited the scene. Europe will have a tough time weening itself off of Russian energy. And Mr. Putin's still trying to work his black magic in several other former Soviet possessions. 

In today's Around The Web we posted a story about gas prices in 11 U.S. states falling as demand seems to be down so far this driving season. Brent crude (Aug. 14) hit its 52-week high of $115.18 on 6/19/14. In today's early trading it hit a low of $107.76.

Here's a quote today from Reuters. 
Brent inches down toward $108 on weak U.S. gasoline demand

Brent crude had fallen 20 cents to near $108 a barrel, down for a ninth straight session and matching a similar losing run in May 2010. U.S. crude is down for a tenth consecutive session under $102 a barrel, 60 cents below Wednesday's close. The front-month price is on track to post its longest stretch of losses since July 1984.
A steeper fall in West Texas Intermediate has widened its spread with Brent to more than $6 a barrel after touching the narrowest in nearly a month on Wednesday.

We wrote then and it's still our story now and we're sticking with it. You want to own oil. Keep some powder dry for big pullback and choose wisely.
 

Here's another point of view about the death of oil. We have argued for some time there are no heroes without villains. Part of the rancor about oil is about vilifying it by blaming it for creating more damage than it actually does.

This is a tried and true tactic globalists and the climate change crowd roll out every chance they get. Hydrocarbons are the dirty word of the decade.
http://www.thedailybell.com/news-analysis/35467/Dont-Fall-for-the-Energy-Hype/

Mr. Warren Buffet is pretty tight with the Obama and Hilary clans. Last time we looked he was also pretty rich. So it appears the "Omaha Scold" is quite happy making lots of money transporting the nasty--and now apparently explosive stuff--out of North Dakota.



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