Why Oil Just Hit My Price Target – and Where It’s Going Next

by | published September 14th, 2017

As the U.S. market begins its recovery from the double whammy served up by hurricanes Harvey and Irma, my earlier projections of where crude oil prices are headed have come true.

Just a little quicker than anticipated.

As I am writing this, WTI (West Texas Intermediate, the benchmark crude rate for futures contracts written in New York) has moved above $50 a barrel for the first time in over five weeks.

In fact, it’s up 6.1% in barely three days. Meanwhile, Brent (the equivalent and more globally used benchmark set daily in London) is approaching $56.

Two months ago, I said WTI would be at $52-$54 and Brent at $55-$57 by the end of September. Currently, WTI is within $2 a barrel of its predicted range and Brent has already reached it.  

What’s interesting is the fact that this rise is taking place while much of the Gulf Coast refinery infrastructure either remains offline or is running at partial capacity.

After all, refiners form the bulk of crude end users. A reduction in refinery flow rates usually cuts into crude demand and, thereby, pushes prices down.

Despite that, oil prices are going up this morning. There are three reasons for this

China Just Unveiled a Solar Energy Game-Changer

by | published September 13th, 2017

Marina and I made it out of Fort Lauderdale on one of the last flights before Irma hit South Florida. We will be flying back this weekend to assess the damage.

Our sincere condolences to anyone else who was affected.

Initially, our plan was to drive up to our place outside Pittsburgh. But after seeing the initial parking lot forming on I-95 moving north and the lack of gasoline, we hastily reconsidered.

It also brought to mind how essential energy is to modern life.

Some of the unimaginable pain, grief, and loss from natural disasters like Irma – still unfolding as a tropical storm in the Southeast U.S. as I write this – or the tragedy of Harvey in Texas, comes from the damage to infrastructure.

Our deepest sympathies go out to all those affected by these catastrophes.

With power lines down, transformers and generating stations busted, refineries damaged, and transport systems closed, not much else can happen – whether in terms of recovery or reconstruction.

This means, in the longer term, the issue of better integration and redundancy in our power technologies is crucial.

And that’s why one particular technology being shown in Las Vegas today drew my attention.

It deals with a vexing problem that has taken up much of my time over the past decade.

It’s a true game-changer