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.
It won’t go away, no matter how much you try to ignore it…
It’s a trend that my colleagues and I have been talking and writing about over and over again.
And to be honest, I don’t think investors understand just how big it will get over the next decade.
At times, the surge in U.S. shale activity seems to be the last bit of good news about our domestic oil and gas.
You should know the kind of potential that I’m talking about. My readers just banked 170% on one small company in the middle of it all.
Don’t worry, they’ll catch up to us — eventually.
What’s driving oil prices?
Oil’s recent run above $81 per barrel this week has been part of a month-long rally. If you recall, oil prices had fallen below $73 per barrel during the last week of October.
And we can thank the declining U.S. dollar for much of the rally.
As you can see below, the dollar hasn’t been too hot during September:
So what’s in store for the future?
The question is whether or not oil prices will have enough steam to break out of the $70-$85 trading range.
Even though gasoline consumption rose 6.1% last week, don’t forget the supply glut.
The EIA’s latest oil report showed a slight draw from storage — but also take into account that inventories are 19.5 million barrels higher than last year’s levels. That’s well above the 5-year average.
Yes, the recently released consumer spending report showed the economy expanding at a relatively small pace.
That may offer some confidence that we’re heading in the right direction…
But we’re doubtful it’ll be enough to cause a spike in oil prices.
Enjoy your weekend,
P.S. In case your work week was as hectic as mine, I’ve included some of the top energy stories to cross my desk this week. You can find them below:
Tapping into the Soviet’s Lost Oil Field: The Company Sitting On a $51 Billion Fortune
One of the last untapped fields of conventional oil wasn’t discovered in Saudi Arabia. And without question, this lost oil field was one of Stalin’s best-kept secrets. Now, after nearly decades of being forgotten, one Mongolian oil company is finally tapping into this massive oil field — a fact that can deliver investors returns of more than 900%.
Finally, a Medical Breakthrough: The Last Flu Shot You’ll Ever Need
It happened in a lab in San Diego, California. A small team of scientists discovered a medical breakthrough that could save hundreds of thousands of lives. Check out the latest video report on this developing story.
WTI Crude vs. Brent Crude Oil: Bracing for a New Benchmark
Editor Keith Kohl reveals oil’s next global benchmark and how investors can get involved.
Mongolia Wind Profits: What We Just Learned from a Meeting with the Mongolian Prime Minister
Editor Jeff Siegel reveals new opportunities in Mongolian Energy.
Global Cleantech Legislation: Profiting from the Whining Schmucks of Congress
Editor Nick Hodge calls out Congress for stalled energy legislation and offers ways to profit from the country fully embracing a cleantech future.
Peak Coal Theory: Profit from the Peaks
Editor Ian Cooper explores the theories of peak coal, and how much quality coal we may have left.
Uranium Up on Kidnapping: Grab This Bottom as Prices Surge
Christian DeHaemer points out that uranium prices have turned — time to grab hold of this market bottom with both hands.
China’s Newest Economic Weapon: Rare Earth
Editor Ian Cooper uncovers why rare earth is at the center of controversy again, and offers three ways to profit from it.
The New American Palladium Eagle Bullion Coin: America’s New Palladium Investment Plan May Double Demand
Editor Luke Burgess explains why demand for palladium is about to soar, and gives readers his top North American palladium stock pick.
Eight Reasons to Buy Oil: Oil Breaks Above $81
Christian DeHaemer gives you the eight reasons that oil is moving up — and why this will continue.