This Huge Texas Oil Fraud Scandal Could Happen Again – Here’s How

by | published September 20th, 2017

As you know, everything is bigger in Texas – ranches, oil fortunes, trucks, you name it.

But there’s a certain court case that’s getting to be a really big thing… even by Texan standards.

Last week in San Antonio, Texas State Senator Carlos Uresti testified in a bankruptcy hearing. The process follows from the 2015 insolvency of FourWinds Logistics.

The company’s former CEO, a consultant to management, and Uresti himself have been charged in a separate criminal case alleging investor fraud.

For his part, the senator has been indicted by a federal grand jury in San Antonio on no less than 11 counts, including wire fraud, money laundering, securities fraud, and engagement in monetary transactions with property from specified unlawful activity.

If found guilty on all 11 counts, he could get some 200 years in prison. Unlike most of the company folks, he has entered a “not guilty” plea.

Uresti worked as an advisor to FourWinds. According to the charges, his function was to attract investors in exchange for a share of the resulting proceeds.

That case is going to trial next month.

But in his testimony in the bankruptcy proceedings last Tuesday, Uresti acknowledged that FourWinds “might have been a Ponzi scheme.”

Right, and Irma might have been a hurricane…

The thing is, this alleged Ponzi scheme operated right in the middle of the American “shale revolution.”

And it could be happening again, right now

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