The Next Benchmark for Oil Bulls

Keith Kohl

Written By Keith Kohl

Posted November 7, 2009

Welcome to the Energy and Capital Weekend Edition — our insights from the week in investing and links to our top articles from Energy and Capital and sister publications.

What began as a rally for oil this week ended in disappointment.

Opening at $77.02 per barrel on Monday, crude prices quickly moved higher.

By Wednesday, the EIA reported a four million barrel inventory drop. However, keep in mind that inventory levels are still 24 million barrels higher than a year ago. The news was enough to push oil over $80 per barrel.

The next obstacle for prices to overcome was the Department of Labor’s report on Friday. Here’s oil trader Phil Flynn weighing-in this morning on a recent productivity report by the Department of Labor:

The good side of this is that if productivity is that good inflation should remain lower than it might have otherwise. Which means central bankers can have more confidence keeping the pedal to the metal with this entire fiscal stimulus keeping the carry trade alive. Yet what may be more significant about this incredible number is that it may mean that the number of unemployed workers that we see in today’s jobs report may be the peak of the recession.

Naturally, a stronger economic outlook would lead to increased demand. . . Unfortunately, that wasn’t the case this week.

On Friday, the Labor Department reported that unemployment had risen above 10%, marking a 26-year high. That certainly wasn’t the bullish news we were hoping for.

Crude prices dropped as low as $76.71 per barrel. Going forward, we’ll be looking for oil to hold the $77/bbl mark.

And in case you missed this week’s top articles from Energy and Capital and our sister publications, I’ve included them below.  

Enjoy your weekend,

keith kohl

Keith Kohl

Energy and Capital


Natural Gas Companies: One Natural Gas Buy for Winter. . . And One Investment Pitfall
Energy and Capital Editor Keith Kohl shows readers one reason to stay bullish on natural gas prices, as well as one trade that is ready to explode as natural gas prices rebound.

North Dakota’s Recession-Proof Secret: How to Get Your Share in America’s Top Oil Play
There’s a very specific reason why North Dakota has been virtually untouched by this recession. Of course, there’s only one way for investors to get a piece of the action. . .  and our new report outlines exactly how you can profit from the country’s hottest oil play.

Lithium-Ion Battery Stocks: The Billion-Dollar Battery Backbone
Energy and Capital‘s Nick Hodge reveals why you should be investing in the hottest sector on the market. In fact, smart investors are already gearing up for their next round of profits. . .

Top Biotech Stocks: Smart CEOs and the Race for a Cure
Wealth Daily Editor Steve Christ uncovers some of the best biotech stocks on the market today, highlighting one tiny research company that stands to make a killing.

How to Trade with a 94.2% Success Rate: Cherry-Picking the Top Stock Analysts in the Business
Lately, traders have been too hesitant to trade in today’s volatile market. But that doesn’t have to be the case for you. Ian Cooper and his readers have already banked 35% in five days, 28% in six days, even 47% after holding one stock for a week. Isn’t it time you felt this confident about your trades?

Investing in Rare Earth Metals: The Saudi Arabia of the Arctic Holds the Key to these “Dragon Metals”
These aren’t your everyday metals. Wealth Daily Publisher Brian Hicks weighs in on the latest boom in what’s being called China’s “Dragon Metals.”

Thematic Trading: You Can Predict Trends in Any Market
Wealth Daily Editor Ian Cooper isn’t your average trader. When most investors are cringing in today’s market, Ian is calling his shots. He offers readers several ways they can predict the trend — no matter how the market is performing.

The U.S. Army’s New Solar Plant: Why Uncle Sam is Building a “Green Coalition”
Green Chip Editor Sam Hopkins explains how the U.S. Army is creating a “Green Coalition” and offers insight as to how readers can take advantage of this new development.

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Hydrogen Fuel Cells: The Downfall of Tesla?

Lithium has been the front-runner in the battery technology market for years, but that is all coming to an end. Elon Musk is against them, but Jeff Bezos is investing heavily in them. Hydrogen Fuel Cells will turn the battery market upside down and we've discovered a tiny company that is going to make it happen...

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