• OPEC production fell 411,000 barrels per day to 29,343 million bpd.
• Libya's production fell 343,000 barrels per day, from 1,396,000 bpd.
• Nigeria fell 107,000 barrels per day due to Royal Dutch (RDS) Oil maintenance.

Continue reading Brent Crude Oil Explodes to $120 Per Barrel

Brent Crude Oil Explodes to $120 Per Barrel originally appeared on BloggingStocks on Mon, 04 Apr 2011 15:00:00 EST. Please see our terms for use of feeds.

Continue reading Oil Pops $3 to $77 on Strong Manufacturing Data, Weaker Dollar

Oil Pops $3 to $77 on Strong Manufacturing Data, Weaker Dollar originally appeared on BloggingStocks on Tue, 16 Feb 2010 15:40:00 EST. Please see our terms for use of feeds.

All is not well in paradise. Producer prices rose 2.4% in November. While this the first gain this year, the size of the jump was much more than expected and the highest since October 2008. At than time we were coming off record oil prices. Analysts had expected a meager 1.6% rise, a surge in energy prices in the past month contributed to a much higher rise.

The Federal Reserve is meeting today and tomorrow. The Fed will then issue its policy statement on interest rates. It is expected that interest rates will remain low. All eyeballs are on whether the Fed will still include the words: "Extended period."

Continue reading Producer prices rise a hefty 2.4% in November

Producer prices rise a hefty 2.4% in November originally appeared on BloggingStocks on Tue, 15 Dec 2009 10:00:00 EST. Please see our terms for use of feeds.

ConocoPhillips (NYSE: COP) fourth-quarter earnings report provided a stark contrast to the high-flying results being reported by the oil companies when gasoline prices exceeded $4 by a substantial amount in some markets.

For the quarter, ConocoPhillips reported a loss of $31.8 billion. resulting from the write down of certain assets, including goodwill put on the books after several recent acquisitions.

Continue reading ConocoPhillips running out of gas?

ConocoPhillips running out of gas? originally appeared on BloggingStocks on Fri, 30 Jan 2009 11:30:00 EST. Please see our terms for use of feeds.

Continue reading OPEC, at Davos, signals more production cuts are ahead, if needed

OPEC, at Davos, signals more production cuts are ahead, if needed originally appeared on BloggingStocks on Thu, 29 Jan 2009 13:26:00 EST. Please see our terms for use of feeds.

Continue reading Crude is not awakening ... at least not any time soon

Crude is not awakening ... at least not any time soon originally appeared on BloggingStocks on Tue, 13 Jan 2009 10:23:00 EST. Please see our terms for use of feeds.

Continue reading OPEC still seen cutting supply in December, but will members comply?

OPEC still seen cutting supply in December, but will members comply? originally appeared on BloggingStocks on Tue, 18 Nov 2008 10:40:00 EST. Please see our terms for use of feeds.

Continue reading Drivers getting a little relief at the pump

Drivers getting a little relief at the pump originally appeared on BloggingStocks on Fri, 26 Sep 2008 14:39:00 EST. Please see our terms for use of feeds.

Continue reading Tumbling oil price seen assisting U.S. recovery

Tumbling oil price seen assisting U.S. recovery originally appeared on BloggingStocks on Mon, 15 Sep 2008 15:22:00 EST. Please see our terms for use of feeds.

Beyond the torment it has already caused in the Carribbean and the stress it places on those who are evacuating the Gulf Coast, hurricane Gustav will lead to higher prices at the pumps. That's because the majority of the Gulf of Mexico's oil production is shut down in anticipation of Gustav's force.

Exactly how much production is being shut down? CNNMoney reports that "energy producers have shut in approximately 77% of oil output and 37% of natural gas production in the Gulf of Mexico." This is affecting three producers particularly hard -- Royal Dutch Shell PLC (NYSE: RDS.A), BP PLC (NYSE: BP) and Chevron Corp. (NYSE: CVX).

And the production shut-down is significant -- "nearly 1 million barrels of daily oil production is now shut down. The last time this happened was in November 2005, after Hurricanes Katrina and Rita. In addition, 2.75 billion cubic feet of daily natural gas production is now shut down" according to CNNMoney.

Continue reading Gustav could cost you $5 a gallon at the pumps

Gustav could cost you $5 a gallon at the pumps originally appeared on BloggingStocks on Sun, 31 Aug 2008 09:15:00 EST. Please see our terms for use of feeds.

Last Friday's rally was heartening, but why did it happen? I am guessing that a drop in oil and a rise in the dollar were helpful ingredients. At $115.32, oil is down 22% from its $147.27 a barrel high, and at $1.49, the dollar has strengthened 11% from its low of $1.60 per euro. But what was behind those moves? Can those factors persist? What happens to stocks if they sink?

The dollar/euro is moving based on relative economic strength and inflation policy. Some think that the dollar strengthened over recent weeks because Europe appears to be heading into a recession and the U.S. has already been in one since the fourth quarter of 2007. If the U.S. is further along, it may begin its recovery sooner.

As far as inflation policy, the U.S. has kept rates at 2%, while Europe appears more likely to raise rates to fight inflation. Bloomberg News reports that European Central bank council member Klaus Liebscher said "policy makers remain focused on the 'worrying' level of inflation." The euro has rebounded to $1.50 on this announcement.

Continue reading If dollar falls and oil rises, will stocks tank?

If dollar falls and oil rises, will stocks tank? originally appeared on BloggingStocks on Mon, 11 Aug 2008 08:28:00 EST. Please see our terms for use of feeds.

High gasoline prices are putting the squeeze on companies and their workers. People are leaving their jobs due to the high commuting costs. The New York Times reports that a resume service received "14 calls last week and 9 of those named high gas prices as their No. 1 reason for leaving their job."

And by my count, the Times presents seven ways that companies are changing to relieve the pressure:

• Encourage more telecommuting. The Times describes how "Citigate Cunningham, a public relations company, now encourages workers to stay home whenever possible, providing laptop computers and BlackBerrys to enable telecommuting, and reimbursing them $40 a month for high-speed Internet connections in their homes."
• Give employees money to pay for gas. Since June, OperationsInc., a human resource consulting firm, gave employees up to $100 a month on an American Express (NYSE: AXP) card "to offset rising gas prices."
• Rent offices closer to workers' homes. Microsoft Corp. (NASDAQ: MSFT) recently "leased three large office complexes far from its headquarters" to cut 7,000 employees' commutes.

Continue reading Seven ways that companies cope with high gas prices

Seven ways that companies cope with high gas prices originally appeared on BloggingStocks on Thu, 07 Aug 2008 10:40:00 EST. Please see our terms for use of feeds.

NBC's Today Show is running a story this morning on the $100 fill-up. With gas prices hitting over $4.50 a gallon in some places, anyone with a tank that takes more than 22 gallons could find themselves topping two figures when they go to the gas station.

Since my tank is 20 gallons, I have not had that experience yet. But there are many people who have. I can only imagine that the first time someone spends over $100 to fill up their tank fills him or her with different emotions. Three that come to mind are anger, frustration, and a sense of helplessness. I know that more people are turning to motor scooters, such as the Vespa, which get 70 miles per gallon to get around.

But if your vehicle takes more than 22 gallons, it may be that you need more room than a scooter can provide. Have you reached that $100 a tank threshold? How do you feel about it? Are you doing anything differently as a result?

Peter Cohan is President of Peter S. Cohan & Associates. He also teaches management at Babson College and edits The Cohan Letter.

The $100 fill up originally appeared on BloggingStocks on Wed, 09 Jul 2008 09:09:00 EST. Please see our terms for use of feeds.

Things are not working out so well for those at the Fed who deny that inflation exists. After all, its job is to keep the currency strong by putting out brush fires of inflationary expectations before they can become a firestorm of price spike fears. And if current consumers' expectations of inflation are any measure, the Fed is not doing its job.

That's according to the Associated Press, which reports that 90% of those it polled expect ballooning costs to squeeze them financially over the next half-year. Consumers have less money than they used to -- the median income is down since 2000 from $61,000 to $60,500. And prices have risen -- food has tripled in many cases and gasoline prices are up to around $4.20 a gallon. But the Fed does not see this -- it measures inflation excluding food and fuel -- and has kept rates at 2%.

And with housing in the tank and lenders in trouble, they can't borrow their way to balancing their budgets. Since the Fed is not controlling inflation, people are coping by cutting back. They are driving less, easing off the air conditioning and heating at home and cutting corners elsewhere. Half are curtailing vacation plans; nearly as many are considering buying cars that burn less gas.

Continue reading Ninety percent of consumers expect cost squeeze

Ninety percent of consumers expect cost squeeze originally appeared on BloggingStocks on Mon, 30 Jun 2008 11:56:00 EST. Please see our terms for use of feeds.

Ted Allrich is the founder of The Online Investor and author of the just released book: Comfort Zone Investing: Build Wealth And Sleep Well At Night. In this weekly column, he'll offer advice to investors who are just getting started.

Last week I wrote about what might happen if gas continues its seemingly inevitable march upward, maybe reaching $10 a gallon. There will be changes in our lifestyles, major changes. Some companies will benefit greatly, others will simply go away, unable to evolve with the new reality. Here are more industries that will be affected.

The airlines, at least the ones left, will fly smaller planes, more fuel efficient. They'll be full, every one, every time. They may not take off unless they are. Some cancelled if they're not booked up 12 hours in advance. Expect more hassles at the airport, more charges and fees for whatever airlines can imagine. (How about charging by the pound? Passengers get on a scale, then pay at the counter based on their weight.) Seat space will get even smaller.

Continue reading Comfort Zone Investing: Higher gas means more changes

Comfort Zone Investing: Higher gas means more changes originally appeared on BloggingStocks on Sat, 21 Jun 2008 10:30:00 EST. Please see our terms for use of feeds.

The highways I drove this Memorial Day weekend were relatively empty thanks to people opting for a Staycation. But people I spoke with were wondering why gasoline prices were so high and whether they'll go higher. While USA Today thinks they've peaked, my answer to both questions is I don't know.

But if one source is right that 60% of the trading volume in oil is from speculators, then a rise in the dollar and a drop in consumption would force those speculators to reverse course -- and that would send oil prices plummeting. Here are five things you can do to help make this happen:

• Drive less. Many people don't have the option to do this. But carpooling is an option for many. People can also try to make many stops during a single car trip rather than doing one at a time. And they can try to telecommute more frequently.
• Take public transportation. Much has been written recently about people taking buses, trains, and other forms of public transportation to work. While this is often more time consuming and can be inconvenient. It may also save money and will certainly cut down on your gasoline consumption.
• Ride a bike or use a motorcycle. I know riding a bike would be a major inconvenience for many people. Riding a motorcycle gets better gas mileage than a car and is fun for some. During periods of dry weather these options could work fairly well. But they'd be awfully tough during a snow or rain storm.

Continue reading Five things you can do about $4 a gallon gas

Five things you can do about $4 a gallon gas originally appeared on BloggingStocks on Wed, 28 May 2008 10:13:00 EST. Please see our terms for use of feeds.

Continue reading Honda (HMC) makes plans for new affordable hybrid

Honda (HMC) makes plans for new affordable hybrid originally appeared on BloggingStocks on Wed, 21 May 2008 10:30:00 EST. Please see our terms for use of feeds.

Continue reading Oil gushes through the $125 mark!

Oil gushes through the $125 mark! originally appeared on BloggingStocks on Fri, 09 May 2008 09:00:00 EST. Please see our terms for use of feeds.

Continue reading Gasoline prices hit new record high

Gasoline prices hit new record high originally appeared on BloggingStocks on Thu, 17 Apr 2008 13:10:00 EST. Please see our terms for use of feeds.

Continue reading Oil surges to record $113.66 on Mexico, Nigeria disruptions, Chinese demand

Oil surges to record $113.66 on Mexico, Nigeria disruptions, Chinese demand originally appeared on BloggingStocks on Tue, 15 Apr 2008 11:15:00 EST. Please see our terms for use of feeds.