Oil is the life blood of the world economy. The turmoil in Libya and throughout the Middle East is threatening the stability of the entire world. "Oil prices were in the danger zone and could rise further, if turmoil continued in the Middle East," Fatih Birol of the International Energy Agency said, according to Reuters. "Oil prices are a serious risk for the global economic recovery."

As of 8:30 EDT, Brent crude is trading at $106.66 per barrel, up 92 cents. West Texas Intermediate crude jumped $6.29 per barrel to $96.00. Keep in mind that while U.S. markets were closed Monday, oil traded higher across other world markets.

Continue reading Brent, U.S. Crude at 2.5-Year Highs on Mideast Turmoil

Brent, U.S. Crude at 2.5-Year Highs on Mideast Turmoil originally appeared on BloggingStocks on Tue, 22 Feb 2011 10:00:00 EST. Please see our terms for use of feeds.

Continue reading Brent Crude Trades Above $90 on Cold Weather and Chinese Demand

Brent Crude Trades Above $90 on Cold Weather and Chinese Demand originally appeared on BloggingStocks on Fri, 03 Dec 2010 09:30:00 EST. Please see our terms for use of feeds.

Continue reading Crude Oil Tops $83 a Barrel

Crude Oil Tops $83 a Barrel originally appeared on BloggingStocks on Tue, 19 Oct 2010 11:20:00 EST. Please see our terms for use of feeds.

Continue reading Oil Continues to Head Higher on Jobless Claims

Oil Continues to Head Higher on Jobless Claims originally appeared on BloggingStocks on Thu, 30 Sep 2010 16:40:00 EST. Please see our terms for use of feeds.

Early Wednesday morning, the American Petroleum Institute (API) reported that crude inventories dropped 2.4 million barrels during the past week. According to Platt's, inventories were expected to increase by 2.2 million barrels.

The report also showed that there was an increase in gasoline inventories, with distillates dropping. While the Energy Department is going to report its weekly supply data later Wednesday, crude futures inched higher above $76 per barrel.

Continue reading Does American Petroleum Institute Data Mean Economy Is Improving?

Does American Petroleum Institute Data Mean Economy Is Improving? originally appeared on BloggingStocks on Wed, 29 Sep 2010 10:30:00 EST. Please see our terms for use of feeds.

Continue reading Crude Drops After Inventory Data

Crude Drops After Inventory Data originally appeared on BloggingStocks on Wed, 23 Jun 2010 14:10:00 EST. Please see our terms for use of feeds.

I don't know if any one out there can say he or she saw yesterday's plunge coming. Was the plummet based solely on a fat-fingered typing mistake? Was it based solely on concerns over the health of the Greek economy? Was it caused by rumors that Germany may pull out of the eurozone? I don't know if we will be able to specify one problem, but one thing is sure in the wake of yesterday's drop -- fear is as prominent as ever on the Street.

On down days in the markets, one generally expects to see a rally in commodities, as they are often deemed a safe haven for investors. This wasn't the case yesterday as crude oil saw its three-day sell off extend itself to a 3.6% loss, bringing the closing price of black gold to $77.11 per barrel (crude is on pace to set its worst week since 2009).

Continue reading Commodities Weren't a Safe Haven on May 6, 2010

Commodities Weren't a Safe Haven on May 6, 2010 originally appeared on BloggingStocks on Fri, 07 May 2010 11:00:00 EST. Please see our terms for use of feeds.

Continue reading Oil Prices Continue to Climb

Oil Prices Continue to Climb originally appeared on BloggingStocks on Mon, 05 Apr 2010 18:20:00 EST. Please see our terms for use of feeds.

Continue reading Oil Jumps to 17 Month High

Oil Jumps to 17 Month High originally appeared on BloggingStocks on Wed, 31 Mar 2010 17:00:00 EST. Please see our terms for use of feeds.

Continue reading Inventory Report Pushes Oil Lower

Inventory Report Pushes Oil Lower originally appeared on BloggingStocks on Thu, 14 Jan 2010 09:40:00 EST. Please see our terms for use of feeds.

Continue reading Oil remains under $60

Oil remains under $60 originally appeared on BloggingStocks on Mon, 13 Jul 2009 17:15:00 EST. Please see our terms for use of feeds.

Continue reading Supply and demand? Not for oil

Supply and demand? Not for oil originally appeared on BloggingStocks on Tue, 12 May 2009 13:30:00 EST. Please see our terms for use of feeds.

For those that had the fortitude to pull the trigger, shorting crude back in early July when all the perfect storm conditions for $200 per barrel oil were on the horizon ... and had the stones to stay with that trade ... made a killing.

This is one of the greatest reversals for any major market of any kind that has ever occurred. And it clearly shows how the crude oil market was being manipulated by speculators and hedge funds.

The impact was fatal for hundreds of small airlines and small- to medium-sized trucking companies, along with thousands of other companies that didn't hedge against the price explosion in energy.

The price of crude, which topped out at $147 per barrel in July 2008, crashed to $35 per barrel by Dec. 18 -- a 76% haircut -- before getting a bid that got the price back above $40 on the eye-popping headline that OPEC would slash daily production by 4.2 million barrels.

Continue reading Best Trades of 2008: #3 Shorting oil on the Fourth of July

Best Trades of 2008: #3 Shorting oil on the Fourth of July originally appeared on BloggingStocks on Wed, 31 Dec 2008 14:00:00 EST. Please see our terms for use of feeds.

This oil trade takes the cake.

At the zenith of the speculative bubble in the oil patch -- when crude hit $147 per barrel in July -- you had everyone from T. Boone Pickens to Prince Alaweed touting $200-per-barrel oil by the end of the year.

Crude is now trading around $40 -- down $107 per barrel in less than six months. Unbelievable!

And this latest drop comes after OPEC voted to cut daily production by an eye-popping 4.2 billion barrels per day.

Looks like the world is awash in crude oil.

Needless to say, those euphoric longs in the oil stocks got destroyed. Most energy stocks lost 50% to 70% of their value during the course of the sell-off in crude.

And remember those television commercials with T. Boone and Chesapeake Energy (NYSE: CHK) CEO Aubrey McClendon pushing for the expansion of natural gas?

Well, natural gas prices are down 60% from their mid-year highs.

If you put money into T. Boone's Clean Energy Fuels Corp. (NASDAQ: CLNE) as recently as September, when the stock was trading at $20, you now own Mr. Pickens' vision for $5.

Continue reading 2008 Trades Gone Bad #5: The peak oil trade

2008 Trades Gone Bad #5: The peak oil trade originally appeared on BloggingStocks on Fri, 26 Dec 2008 14:30:00 EST. Please see our terms for use of feeds.

Oil has gotten as low as $94 today. That is down from an all-time high of $147. Yesterday, crude sold down almost $10.

There is a case to be made that oil has much further to fall.

The first part of the argument is fairly simple. As the economy is crushed in the US and EU, demand for fuel and petrochemicals falls through the floor. Demand for China's exports also falls because consumers shut down their buying of everything but the essentials. China's need for crude drops as well.

Under those circumstances, if OPEC does not sharply decrease supply, oil will almost certainly move down by at least a modest amount.

But speculation may have just as great an effect. No one was able to fix a number on how much speculators helped drive crude prices up earlier this year. They had a role in it, and some government agencies and Congressional staffers think oil may not have ever moved above $120 without a push from those trying to make money on artificial price inflation.

Speculation cuts two ways. If those buying futures begin to gamble that oil will move down and if they begin to short crude, the downward push on oil could become significant.

Speculators may have done a lot to hurt the economy by pushing oil prices up. Now, perhaps they can do some good pushing prices down and make a ton of money in the process.

Douglas A. McIntyre is an editor at 247wallst.com.

Will oil move back below $80? originally appeared on BloggingStocks on Tue, 30 Sep 2008 04:28:00 EST. Please see our terms for use of feeds.

Economists think they have most of the data they need to forecast the price of oil: The dollar is rising; consumption in the US is falling; production out of OPEC is steady; the drop in crude has driven many speculators out of the game; unrest is receding in Nigeria and Venezuela; huge deposits have been found off Brazil; the hurricane season in the Gulf of Mexico has not disrupted production.

War is harder to predict, but there it is in Georgia. Russia seems intent on destroying the military of its small neighbor state. The U.S. is pushing to keep Russia from escalating the conflict, which is driving extreme tension between Russia and NATO. Russia is an important supplier of crude, and it could decide to use that as leverage to keep the West out of the dust up.

There is some speculation that the Russian government would like to cripple other countries that share it borders to build a geographic "buffer" to its south. NATO may be forced to step in because some of these countries are close to its members' territories.

War is hard to predict and the oil market does not like the unpredictable. Oil prices are about to rise and could get much higher.

Douglas A. McIntyre is an editor at 24/7 Wall St.

Russia's war plan and the price of oil originally appeared on BloggingStocks on Mon, 11 Aug 2008 08:13:00 EST. Please see our terms for use of feeds.

Minyanville's top dog, Todd Harrison, dares to ask in public what Wall Street types quietly consider in private. For more insight and ideas, visit

www.Minyanville.com

A few Random Thoughts on the action in crude:

• A finski (a $5 bill) ain't what it used to be - a 10% move at the beginning of last year. Now it's barely 4%.
  
  

• While I've been bearish on crude through the lens of deflation -- and I continue to believe all roads lead there -- "pure trading eyes" sees the sideways action for the last month.
  
  

• United States Oil Fund (AMEX: USO) $104-$113 are the parameters to watch (filling of the gaps versus upside breakout). You can drive a truck through that, I know, but I don't make the rules, I just try to play by them.
  
  

• Hands over eyes, sideways movement under resistance is a bearish churn. The same movement above support is a bullish base.
  
  

• My current position? Flatter than a sat on hat. And I like it that way... For now.

R.P.

Position in USO

Crude Control originally appeared on BloggingStocks on Wed, 25 Jun 2008 17:00:00 EST. Please see our terms for use of feeds.

World leaders, hedge fund managers, and oil ministers are all in the Saudi kingdom trying to dope out why crude prices are so high. Early news out of the meeting is not good.

The head of Shell told Reuters that the meeting was a waste of time, saying "What I've heard so far are basically all good ideas, but it will probably not change the price tomorrow morning."

The Saudis did day that they would increase oil production.

The summit is a fine example of how too many cooks spoil the soup. Investors have a different agenda from the oil companies. The oil companies have a different agency from the exporters.

The importers just want lower prices.

Douglas A. McIntyre is an editor at 247wallst.com.

Big oil gathering may do little for prices originally appeared on BloggingStocks on Sun, 22 Jun 2008 06:07:00 EST. Please see our terms for use of feeds.

• If the next generation Apple (AAPL) iPhone is effectively a handheld computer, is the personal computer space a place to poke on the short side?

• What's the franchise value for Sun Microsystems (SUNW, er, JAVA)?
  
  
• Maybe that's the problem. In this ADD, immediate gratification world, perhaps folks don't remember that JAVA used to be SUNW?
  
  
Woah. Nelly?


Given that funky looking Gold Fields (GFI) chart, should I stress that I'm playing name through defined risk calls?


• In addition to the note that when I unwind my short crude I'm goning to sneak out of my long metal play, too?
  
  
• While I grabbed some tertiary financial exposure this morning, why is "Good traders know how to make money while great traders know how to take a loss" repeating in my keppe as I watch the action and overhang in Lehman (LEH)?
  
  
• Speaking of ticker symbols with G's in the front and I's behind, when do I revisit Gannett (GCI), which I pared nicely above $30 and kept some for the thesis?
  
  
Speaking of pairs, how do I get long Jo, short Blair?


R.P.

Positions in LEH, GFI, GCI

Answers I Really Wanna Know: Apple's Handheld Computer originally appeared on BloggingStocks on Tue, 10 Jun 2008 14:39:00 EST. Please see our terms for use of feeds.

Continue reading Market worries push oil prices under $90

Market worries push oil prices under $90 originally appeared on BloggingStocks on Mon, 17 Dec 2007 13:00:00 EST. Please see our terms for use of feeds.