Welcome to the Energy and Capital Weekend Edition – our insights from the week in investing and links to our most-read Energy and Capital and sister publication articles.
Have the bulls finally broken through?
After stubbornly trading between $65 and $75 per barrel for the last four months, crude oil finally broke the high set in June.
As you can see below, it’s been a predictable ride the whole way. At times, we probably could’ve set our watch to it. Whenever crude approached $75 per barrel, a downward move to $65 per barrel was inevitable.
Since Monday’s trading, oil prices rose nearly $6 per barrel. Even with a minimal inventory build of 400,000 barrels reported by the EIA, it wasn’t enough to sour the mood. The weekly report also showed that U.S. gasoline inventories dropped by 5.23 million barrels.
That wasn’t the only bullish news.
A Federal Reserve report was released, highlighting an increase in output at factories mines and utilities in September.
Is it a premature celebration?
Oil trader Phil Flynn isn’t convinced, "The Market is only focused on the bullish like stockpiles of distillates, including heating oil and diesel falling 1.08 million barrels to 170.1 million and not the fact that supply is 30 percent above the five-year average. Right now we have to respect the range. The market has finally broken out as the weak dollar and better economic data transcends oversupply on the perception that supplies will tighten more."
Whether or not we’ve shifted to a higher range for crude prices still remains to be seen. Oversupply will certainly keep a lid on things for a while, so I can only hope you are not expecting to see $85 per barrel this time around.
Enjoy your weekend,
In case you’ve missed any of the recent top stories from Energy and Capital and our sister publications, I’ve included them below.
Wind Power Stocks: How Wind Energy Leads to Yachts
Energy & Capital Editor Nick Hodge comments on recent renewable energy activity with special focus on the rapid expansion of wind energy and wind power stocks.
Investing in Battery Stocks: Making the Sun Shine at Night
Green Chip’s Nick Hodge discusses investing in battery stocks after major global electronic companies take a plunge into the sector…
Gold Baron Reveals His Most Precious Secret:
Imagine for a moment, that you knew about certain factors – already in place – that would cause the price of gold by… say… as soon as next month to start skyrocketing. Even better, you knew you were facing a "bottom" in gold prices… and that this imminent surge could last a couple of years.
Peak Natural Gas: How Canada is Suffering from Peak Natural Gas
Energy and Capital editor Keith Kohl takes a look back at why Canada’s natural gas production may be in jeopardy.
Cleantech Investing: Soros Pays $1 Billion to Go Green
Wealth Daily Editor Nick Hodge discusses billionaire George Soros’s recent $1 billion foray into clean energy.
Dollar Vs. Euro: An Eye on the Euro and the Hottest Indicator on Wall Street
Wealth Daily Editor Steve Christ takes a look at the dollar vs euro and the U.S. Dollar Index: the hottest indicator on Wall Street.
Largest U.S. Gas Discovery: Igniting the Louisiana Land Rush
It’s the natural gas discovery that sparked a land rush. Even while the economy struggles to recover, this small town has been practically immune to the recession. Energy and Capital readers have an opportunity to play four natural gas companies leading the charge.
Chimera Stock: 2 Ways You Can Leverage Up Your Assets with this Company’s Stock
Wealth Daily editor Christian DeHaemer reveals a company created explicitly to profit from the debt products of the past two years…and how you can profit from their stock.