Welcome to the Energy and Capital Weekend Edition — our insights from the week in investing, as well as our top stories from Energy and Capital and our sister publications.
Another week has passed, and despite an early rally in energy, the week ended with traders scrambling to take their profits off the table.
Starting off the week, gold prices rallied after an early period of weakness, closing $10.10 higher at $1,116.70 per ounce. The news kept rolling throughout the week, too. By mid-week, a weakening U.S. dollar had traders rushing to gold… also by mid-week, prices climbed to a new record of $1,153.40 per ounce. Not surprisingly, gold ETFs reached new highs as investors poured over $55 billion in gold-backed ETFs during the first nine months of 2009.
Even though crude prices managed to break $80 per barrel by Wednesday, investors quickly began taking profits. By Friday, oil prices had fallen by 3.5%. In the API’s Monthly Statistical Report, U.S. oil production averaged 5.36 million barrels per day. The last time U.S. crude production was that high was June 2005.
Unfortunately, our country’s production troubles are far from solved. In fact, the truth is that U.S. oil production peaked in 1970. Ever since then, we’ve been sliding down the backside of peak oil.
On the demand side of the equation, everybody’s eyes are on China. On Thursday, Platts reported that China’s oil demand surged 10.2% higher in October compared to a year ago. Keep in mind that this is the second consecutive month that China’s demand grew by double-digits. One thing is for sure: With a recovery in sight, we’re certainly not selling with the rest of the herd.
Enjoy your weekend,
P.S. In case you missed the top stories from this week’s from Energy and Capital and our sister publications, you can read them below.
China The Vampire Squid of Commodities: Why We Should Learn to Stop Worrying and Learn to Love Our New Chinese Overlords
Energy and Capital Editor Chris Nelder concludes his report on the 2009 ASPO Peak Oil Conference, focusing on China’s growing thirst for crude oil.
Greenland’s Gift: Taking Control of this $273 Billion Resource
EaC talks about the fate of technology, as it rests on the future of these rare earth elements. Why? Find out how these ‘technology metals’ are critical to developing modern electronics.
Crisis Investing in Brazil: The Great Brazilian Blackout of 2009
Wealth Daily International editor Sam Hopkins reports on the latest blackout in Brazil. However, this crisis isn’t just about the lights going out. Sam highlights several investment opportunities that are getting brighter.
North Dakota’s Recession-Proof Secret: The #1 Oil Play in the Country is Getting Bigger
Energy and Capital comments on why it’s nearly impossible for some states to make the same claims as North Dakota: Not only has North Dakota virtually side-stepped the recession, but at this rate… oil investments in the state are about to explode in 2010! Of course, there’s only one way for investors to take advantage of the situation…
Peak Gold is a Myth: Peak Gold is Bunk, But Perception is Everything
Wealth Daily‘s resident gold guru, Luke Burgess, clears the air with the growing concern of "peak gold."
The Bakken Oil Fields of North Dakota: The Next Step for the Bakken Oil Formation
Things are starting to heat up for the Bakken oil formation. Energy and Capital‘s Keith Kohl explains why the Bakken — once thought of as a mere bailout zone — will help North Dakota overtake California as the country’s third-largest oil producer.
Investing in Smart Meter companies: Giving Up the Electricity Answering Machine
Energy and Capital Editor Nick Hodge takes a moment to talk about smart meter companies and points investors toward the next round of smart grid profits.
The Outlook for Lithium Production: Lithium Battery Market to Hit $15 Billion in 2010
Wealth Daily Editor Ian Cooper shows readers why the lithium boom is just starting. Find out why this new trend could be disastrous for the oil industry.