July 19th, 2016
WTI (West Texas Intermediate, set in New York) and Dated Brent (set in London) may be the dominant benchmarks for crude oil trading, but that doesn’t really tell the story.
Just because these prices are set daily in New York and London hardly means that the U.S. and European markets are calling the shots.
Far from it.
And analysts are finally coming to understand that the true price of oil is no longer determined in the West.
The so-called “mature” developed economies may still hog oil finance (at least for the time being), but the country driving demand for the actual crude, and the products derived from it, lies elsewhere…
And no, it’s not China…
July 14th, 2016
We are in the early stages of what may be the most significant revision in energy investments to occur in a decade (or more), and for me, that has meant yet another day full of meetings. As we just adjourned for lunch, I took the opportunity to fill you in on what’s been going on here.
The situation remains fluid, although the financing involved is quite large and likely to come in stages.
As this unfolds, I will advise you of what is about to happen, and how to play it. You will also be receiving a “heads up” as soon as the strategy has been settled.
Now, that may not happen until next week. For now, suffice to say that huge worldwide sources of funding are about to start investing globally – and especially in the U.S. – in what will be much more than just another merger and acquisition cycle.
But until I have concrete indicators to pass along, let’s today consider a more immediate concern: how to best play oil prices that keep bouncing up and down within a “range,” as they have this week.
It’s actually quite simple…