Volatility is a Wonderful Thing!

VIX, the ‘Fear Index’ or Volatility Index of S&P 500 options over the next 30 days published daily on the Chicago Board Options Exchange was down a little from its highs last week. Oil prices are still at multi-year lows, the DJIA rebounded Friday, October 17th moving up 263 points but is still off 5% Read more about Volatility is a Wonderful Thing![…]

A Fly on the Wall at OPEC’s November 27th Meeting

The next meeting of OPEC ministers is scheduled to take place November 27, 2014 in Vienna. It is not going to be business as usual. The stated purpose of the meeting is to set production policies for 2015. But we all know what the members will be discussing over tea or something stronger. “How do Read more about A Fly on the Wall at OPEC’s November 27th Meeting[…]

Big Sale on Oil! Limited Time Only!

SOURCE: US EIA, Bloomberg, CME Group That’s the real headline from the geopolitical reaction to falling oil prices. In the past falling world oil prices have provoked a meeting of the OPEC oil ministers who would agree to and announce a cartel cut in production targets to bring down supply levels to match demand. Then Read more about Big Sale on Oil! Limited Time Only![…]

What to Make of Lower Oil Prices? Merry Christmas!

SOURCE: US EIA As I write this on October 13, 2014, the Brent crude oil price is $88per barrel or about 23% lower than its $115 year-to-date peak on June 19. For 13 straight months until July 2014 monthly Brent spot prices traded from $107 to $112 per barrel according to the US Energy information Read more about What to Make of Lower Oil Prices? Merry Christmas![…]

How Sweet is it? I’m Talking about Light Sweet Crude Oil

SOURCE:  US Energy Information Administraton ‘So there will be weeping and gnashing of teeth’ the parable of the weeds goes in Matthew 13:42. No, this is not a Bible lesson nor am I suggesting a revelation about the future direction of oil prices. But it always surprises me when there is so much angst when Read more about How Sweet is it? I’m Talking about Light Sweet Crude Oil[…]

The Global Energy Game Changer @ Work

The Global Energy Game Changer @ Work The US oil and gas business is booming because of the shale revolution at work, but in many parts of the industry there are growing pains.  The super majors face rising costs for finding and developing new reserves.  The midstream players face infrastructure bottlenecks.  Refineries face a glut Read more about The Global Energy Game Changer @ Work[…]

Put America’s 'Spare' Oil Productive Capacity to Work

Global oil prices are driven by a ‘rule of thumb’ that suggests prices will go up when the spare capacity of oil available on any given day is less than 5% of expected global demand.  In today’s high priced oil market that swing in spare capacity is about 2%. This a big deal because traders Read more about Put America’s 'Spare' Oil Productive Capacity to Work[…]

Gasoline Prices, Inflation and Politics: A Volatile Mix

The impacts of higher oil and gasoline prices are beginning to ripple across the economy.  Wells Fargo Economics reported today that higher energy prices increased the producer price index (PPI) by 0.4 percent in February 2012 which was the highest monthly gain in the PPI in five months. Wholesale gasoline prices were up for the Read more about Gasoline Prices, Inflation and Politics: A Volatile Mix[…]

The Answer to Oil Price Spike Outrage is Right Before Our Eyes

Our world is in a ‘funk’—again over global oil price spikes caused by concerns about conflict between Iran and Israel drawing the US into a war, the continuing agony of Greek debt and its euro contagion, worries that China may have deeper economic problems than thought that will drag the global economy back into recession.  Read more about The Answer to Oil Price Spike Outrage is Right Before Our Eyes[…]

STEO: EIA Short Term Energy Outlook Highlights

The US Energy Information Administration released its updated Short Term Energy Outlook (STEO) on March 8, 2011.  The forecast assumes U.S. real gross domestic product (GDP) will grow 3.3 percent in 2011 and 2.8 percent in 2012.  The US growth rate is not as fast as world real GDP (weighted by oil consumption) which EIA Read more about STEO: EIA Short Term Energy Outlook Highlights[…]