Crude Stocks Rise on Latest Labor Report

Keith Kohl

Written By Keith Kohl

Posted March 7, 2010

Welcome to Energy and Capital’s Weekend Edition — our insights in investing, as well as the top stories this week from Energy and Capital and our sister publications.

This week marked the anniversary of a very special event for investors.

One year ago, the oil markets bottomed out.

Of course, it was a much different environment back then. Crude oil was trading for almost half of what it is today, and nearly every energy company was trading near (or had already reached) 52-week lows.

Chances are you were squeezing your eyes shut on a daily basis, too. Some of us, however, didn’t see the barrel as half empty. I remember telling my readers that many of those beaten down oil and gas stocks were a screaming bargain at the time.

You know the rest of the story… Stocks across the board began to climb out of the trenches, making a lot of investors — and most of my readers, I hope — a small fortune. During the latter half of 2009, however, oil prices fell into a repetitive cycle between $60-$80 per barrel.

This week, that pattern continued as crude prices rose to $82.07 per barrel on Friday. Yesterday’s gain was thanks in part to an optimistic report released by the Labor Department. According to the report, the number of payrolls dropped by 36,000 in February. Analysts were expecting payrolls to drop by 68,000.

Unfortunately, I’m not expecting crude prices to break the cycle next week. There’s simply not enough backing oil right now to cause prices to break out. The latest EIA oil report showed a 4.1 million barrel increase in U.S. crude oil inventories. In case you’re keeping track, inventories are still above the five-year average. Gasoline demand fell last week to 8.88 million barrels per day.

In case you missed some of our top stories this week from Energy and Capital or our sister publications, you can catch up on them now…

Avoiding Exxon: The Oil Investment Trap… Stay Away from this Stock at All Costs
Energy and Capital‘s Keith Kohl warns readers about one of the few oil companies that lost its shareholders money since oil prices bottomed last March. Find out how you can avoid making the same mistake.

Desalination Companies as an Energy Play: The Commodity All Energy Technologies Need
Editor Nick Hodge explains how readers can take advantage of water stocks into today’s energy-driven markets.

The Bakken Oil Formation: One Mistake that Could Make You Millions
Energy and Capital readers can handle making mistakes every now and then — especially when it actually makes them money. It’s only a matter of time before this tiny mistake is in the public spotlight, and by then it’ll be too late to make your move.

The Death of Death: Overlooking one American Biotech with Huge Potential
Disease is, far and away, the largest claimer of life every year. But one tiny American biotech company is about to change the game completely, boosting both your immune system and portfolio a thousand times over. Wealth Daily reports.

Warren Buffett’s Annual Letter to Shareholders: The Wit and Wisdom of the World’s Greatest Investor
Wealth Daily Editor Steve Christ points readers to the latest investment advice from Warren Buffett, offering you an in-depth look at the words of wisdom from the oracle of Omaha.

Lihir Gold Expects Increased Production: Lihir Eyes Annual Production of 1.45 Million Ounces
Gold guru Luke Burgess reports on the latest production targets from one up-and-coming gold producer.

Obama Wants to Spend Your Retirement Money: What the Gov’t Has Up It’s Sleeve for 401(k)s and IRAs
Wealth Daily Publisher Brian Hicks explains why President Obama is going after your retirement savings. If you haven’t heard about his latest attack on your savings, I urge you read this immediately.

Enjoy your weekend,


Keith Kohl

Energy and Capital

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