Oil & Energy Investor by Dr. Kent Moors

Four Reasons Why Oil Prices Remain Sluggish

by | published December 13th, 2018

During my career, I’ve found myself intimately acquainted with airports. Sometimes it seems as though I’ve spent more time on airplanes than in my own home.

I am about to get on an airplane again, this time bound for our home base in Baltimore and meetings with staff.

And while I sit in the lounge and wait for my flight, I have a continuation of the discussion in the last Oil and Energy Investor in mind that I think we should undertake today. 

I’m not one to be a drone to my phone, so when I have a long wait, my attention tends to go to what’s happening out the window. And watching the comings and goings of the planes to and from their designated parking spots is strangely calming.

Not to mention evocative.

See, when it comes to rising and falling, the markets tend to emulate flight patterns.

Until they stall.

Much like the oil markets these days.

Now, this is not going to be an easy read but it is important.

Earlier this week, I described the reemergence of an accentuating debt concern among U.S. oil and natural gas producers.

Nothing would deflect this rising problem more than a rebound in crude prices.

Well, today I am considering why, with all the factors that would seem to dictate higher prices, oil has remained under so much pressure.  

Here is my conclusion

How History is Repeating Itself in the Oil Industry

by | published December 11th, 2018

The roller coaster that is the oil market is beginning to give me motion sickness.

In October, we saw the biggest drop in prices since 2015, and ever since, the markets continued to swing wildly.

Now, normally, discussions of crude oil prices take their departure from what Brent levels – the London benchmark and the primary yardstick used in global oil sales – are telling us.

The other benchmark, West Texas Intermediate (WTI), is the standard for contracts set in New York – a more immediate way of assessing the U.S. production environment.

Now, WTI may be better known in the U.S., but it is not the figure that drives international oil sales. However, on occasion, it is instructive on some more direct implications of note to American investors.

WTI finally posted a gain last week (3.3% through close of trade on Friday), arresting for a bit what has been a noticeable retreat (down 14.7% for the month).

However, a darker side of the picture is emerging