September 25th, 2015
The Energy Information Administration just released its latest report on oil. And although I’m no conspiracy theorist, what’s going on in oil pricing has all the earmarks of a setup.
Each week, the report tells us what the crude oil and oil product markets looked like as of the previous Friday. It is usually the yardstick by which analysts appraise everything from oil supply through refinery utilization to the markets for processed products such as gasoline, diesel fuel, and low sulfur content heating oil.
This week’s report showed criteria that would normally signal upward pressure on prices: a drawdown in oil supply, tighter refinery usage, and a widening spread between crude oil and oil product prices.
Now, this last criterion may be the most important for assessing pricing across the board. It involves the relationship between crude raw material pricing and supply on the one hand and similar considerations for gasoline and heating oil on the other (heating oil serves as a surrogate for diesel in these calculations since both distillates come from the same refinery cut).
Simply put, prices should not decline when the spread is rising.
So why are oil prices heading downward?
Distortion currently occurring in the market.
Here are the culprits behind this price manipulation… as well as how we can profit from these artificial moves…
September 22nd, 2015
As we’ve previously discussed here in Oil & Energy Investor, major infrastructure for solar and wind power networks is complete, while the cost of generating power from either has reached grid parity with traditional sources of electricity.
And now there is a new centerpiece for the accelerating move to renewables…
The state has opted to go all out on alternative energy. In May its legislature overwhelmingly passed a plan to move to complete independence from fossil fuels for power generation. Governor David Ige has put a goal on all of this: 100% by 2045.
Already, as the governor remarked in late August, “The state is creating a number of research institutions and working with a consortium of private companies in what it calls an ‘Energy Excelerator,’ which has generated $400 million in investment.”
But Hawaii has an unusual partner in moving away from its reliance on oil and natural gas:
The United States military.
What’s happening in Hawaii may allow us to make some nice money from a state deciding to go green… and from the military’s need to go off the grid…