What the Fed’s Interest Rate Hike Means for Oil Prices

by | published June 16th, 2017

Finally, after almost a decade of historically low interest rates, the Fed is removing the proverbial punchbowl from the easy-money party.

As it stands, Yellen & Company are only moving rates a mere 0.25% each time – most recently this past Wednesday, for the second time this year.

That’s great news for anyone looking for investment income.

But unfortunately, it also means projections of doom and dread for oil prices are now running rampant.

These talking heads would have you believe that the sky is once again about to fall, because higher interest rates are supposedly dire news for oil prices.

Here’s why they’re wrong

Why U.S. Oil Companies are Against Trump’s Budget Proposal

by | published June 14th, 2017

In its recent 2018 budget, the Trump Administration included a huge energy announcement.

While it went mostly under the radar, the budget included a proposal to sell half of the U.S. Strategic Petroleum Reserve (SPR) for some extra revenue.

Now, the SPR was originally established by Congress in 1975 after the 1973-74 Arab Oil Embargo wreaked havoc on America’s fuel supply.

It was designed to hold up to 729 million barrels of crude oil, and as of mid-May the SPR’s underground locations in Texas and Louisiana held about 688 million barrels.

Selling 350 million or so of those barrels, as proposed, would save some $16.6 billion…

But there’s a downside to it, too.