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 publications.
This week was supposed to be the big rally… or was it?
After all, energy stocks across the board had been beaten down during the last two weeks. Yet if there was one thing we were confident about, it was that oil prices couldn’t fall too low before the panic set in.
As you know, if crude prices fell below $65 for a sustained period of time, we would lose vital investments dollars in future production. OPEC has repeatedly stated it was comfortable with a price range of $70-$80 per barrel.
Once Monday finally rolled around, everything began to work out as expected. Crude oil jumped $1.54 per barrel, nearly reaching $75/bbl during trading that day. Things were even better on Tuesday as oil prices climbed another 3%.
But unfortunately, the good times didn’t last…
By the end of the week, oil declined to a seven-week low when it fell more than 8%. Still, we couldn’t pin the blame on the small inventory build reported by the Energy Information Administration. The EIA’s weekly report showed an increase of 2.32 million barrels to U.S. supply on Wednesday and another drop in gasoline demand. U.S. demand for gasoline is now at its lowest level in more than five years.
This time, we can thank the dollar. This week, the U.S. Dollar Index surged over European concerns, as well as a better-than-expected employment report, which showed the unemployment rate dropped to 9.7%.
Although the bad news keeps rolling in, we’re still confident oil will stay within the $70-$80 barrel range as the recovery continues.
I know how hectic it can get during the work week. So in case you missed any of the top stories from Energy and Capital or our sister publications, I’ve included them below.
Enjoy your weekend,
The Alberta Oil and Gas Royalty Change: Defusing Alberta’s Royalty Time Bomb
The time has come for Alberta to sink or swim. Over the last few years, Alberta’s political shenanigans have managed to scare away energy companies by the dozen. Energy and Capital‘s Keith Kohl explains how Alberta might turn the tables to attract future investment.
The Louisiana Land Rush: The Largest Gas Find in U.S. History
At times, it feels like nothing can go right during this economic turmoil. But that’s not the case for this small area in Louisiana… In fact, they’ve been practically immune to the recession. Energy and Capital explains why their fortunes lie in a massive natural gas deposit that is finally being unlocked — and why perhaps it’s time you joined the shale boom.
The Oil Export Crisis Has Arrived: Venezuela and Mexico: The Point of the Exports Spear
Energy and Capital Editor Chris Nelder warns about the upcoming export crisis faced by both Venezuela and Mexico… and more importantly, how their troubles will affect the U.S.
The Death of Death: Overlooking an American Biotech Fortune
It’s the number #1 killer in the world — even more deadly than the natural disasters which flood media headlines. Learn how you can take advantage of the breakthrough in biotechnology that could save millions of lives every year, with this latest report from Energy and Capital.
Nuclear Energy Stocks: Nuclear Hurdles & Profitable Leaps
Energy and Capital‘s Nick Hodge gives readers the ins and outs of the upcoming nuclear revival, including the best way for investors to play this growing trend.
T. Boone’s Natural Gas Crusade: Pickens Looks to Profit from Compressed Nat Gas (CNG)
Analyst Adam Sharp discusses the latest in T. Boone’s plan for energy dependence… and why his push for CNG may not play out as expected.
Seven Reasons to Invest in China: I’m with Jim Rogers on this One…
Wealth Daily Editor Chris DeHaemer offers seven reasons why investors should be looking to China for their future profits.