Oil Pricing

[Alamakinky]

I intend to do a Temasick....buy high then sell low. After that I will make future posts from the bottom of Bedok Reservoir.

what a day! wti crashed in the asian market and ended up higher in the european and us market. i see oil price slipping again today.


but i am not sure if fed will bring in the cards to hike rate in april or june???

Since Dec FOMC Hike, everything is now awesome:

Dow +3.2% (Dow Earnings -3.5%)
Inflation - CPI up from 0.6% YoY to 0.9% YoY, Core CPI up from 2.0% YoY to 2.2% YoY
Unemployment Rate U6 down from 9.9% to 9.8%, U3 5%, Initial Claims down from 285k to 253k
China Stocks +17% in last 2 months
China FX vol -4pts to 7.6% in 2 months


how do you analyse the situation?

 

[krafty]

I intend to do a Temasick....buy high then sell low. After that I will make future posts from the bottom of Bedok Reservoir.

diu lei, suan me again...:oIo:


:p

 

[krafty]

Kuwait Oil Workers Strike Over: Local Press

Oil may have ignored the bigger than expected API crude inventory build this afternoon, but will the algos also be able to ignore this latest development as Kuwait ramps up to full production in days?

http://www.zerohedge.com/news/2016-04-19/kuwait-oil-workers-strike-over-press

 

[krafty]

good article on oil direction:

http://www.maritime-executive.com/editorials/oil-prices-may-not-need-opec-agreement-to-rise

The real supply crunch is coming from the United States, where the fall in the oil price has led to massive investment cuts. The number of active oil rigs has fallen 75 percent from its peak. Having gorged on cheap credit during the bull years, a third of U.S. energy producers are now facing bankruptcy, according to Deloitte. Recoveries are set to be poor: Goodrich Petroleum has just filed for Chapter 11 protection citing liabilities 10 times greater than assets. Bankers are naturally wary of increasing exposure to this sector and the bond markets are likely to remain closed. Hundreds of thousands of workers in the U.S. oil patch have been laid off. In a strong labour market, they will be difficult to rehire if the industry ever picks up.

So much for cooperation. But what about the oil industry’s supply side? Industry downturns are perpetuated when producers respond to falling prices by raising output. For instance, when the oil price collapsed in the mid-1980s, Saudi Arabia boosted output by around 5 million barrels of oil a day. The intention was to maintain the kingdom’s revenue in the face of falling prices. It could do that because back then the Saudis had plenty of spare capacity.

This time is different. Having ramped up production last year by around half a million barrels per day, the Saudis may be operating at near full capacity. They threaten to crush the oil market with further increases in production. But this looks like a bluff.

 

[frenchbriefs]

oil is continuing to rally....think ima going to liquidate some of my s&P shares soon and buy more xop,xle.going to keep buying even if it goes all the way down to $26.think oil is going to be in one of the big upcoming rallies.

 

[Agoraphobic]

I'm not in the oil business, and always felt that lowering oil prices are good for the rest of us. But this doesn't seem so. It's been going down and keeps getting lower. and looks like will remain down for sometime to come. Jobs in Alberta (the boomtown province of Canada) is so bad, property prices taking a hit there. Even the Saudis are looking at Solar Energy, and Nuclear is seeing a revival in interest, so, the future of oil doesn't look good. Oil will not die, but its glory days are over. The good part of it is - perhaps global warming will be slowed down.

Cheers!

oil is continuing to rally....think ima going to liquidate some of my s&P shares soon and buy more xop,xle.going to keep buying even if it goes all the way down to $26.think oil is going to be in one of the big upcoming rallies.

 

[krafty]

i just bought a barrel of black gold, waiting for the price to rise...:o

 

[frenchbriefs]

I'm not in the oil business, and always felt that lowering oil prices are good for the rest of us. But this doesn't seem so. It's been going down and keeps getting lower. and looks like will remain down for sometime to come. Jobs in Alberta (the boomtown province of Canada) is so bad, property prices taking a hit there. Even the Saudis are looking at Solar Energy, and Nuclear is seeing a revival in interest, so, the future of oil doesn't look good. Oil will not die, but its glory days are over. The good part of it is - perhaps global warming will be slowed down.

Cheers!

Renewable energy still generates a relatively small percentage of the world's energy needs.less than 20 percent.majority of the energy needs are still produced by fossil fuels and the world demand and consumption has been steadily increasing since the 1980s.as the rest of the world develops the demands on oil is going to exceed the developed world by multitudes.I agree solar power is the future of mankind but for short term profits I reccomend investing in oil.

 

[uvwxyz]

Frenchbriefs is correct. The short term condition of the price of oil is fluctuations but it should rally. The other forms of renewable energy wont kick in so soon. Solar, wind and other forms are not that developed yet so not economically viable. Nuclear energy is a bit tricky. How do you trust countries like those in the Middle East and Indonesia with nuclear material when they can either turn into rogue states or the facilities hijacked and the nuclear material ending up in the wrong hands.
Oil will still be black gold for the time being and I will be investing in counters like Keppel when it dips closer to $5.

 

[Agoraphobic]

Electrical demand (and usage) will increase. Power has to come from somewhere. In this (supply) solar is unlimited. The limiting factor is the technology, which I see high-tech companies will invest more and more into it. Electric cars and mobile technology increases attest to this, this area in science will see more and more developments, and breakthroughs, even the Saudis are looking at solar energy. Everything related to this and battery trechnology is worth investing in. It is a growth area. Just think, India plans to provide electricity to more of its households, and she's got a big big population to provide for. Ourselves here, we are also looking to at more and more electrical goodies, meself, thinking of getting a drone as my next toy.

Cheers!

Renewable energy still generates a relatively small percentage of the world's energy needs.less than 20 percent.majority of the energy needs are still produced by fossil fuels and the world demand and consumption has been steadily increasing since the 1980s.as the rest of the world develops the demands on oil is going to exceed the developed world by multitudes.I agree solar power is the future of mankind but for short term profits I reccomend investing in oil.

 

[Agoraphobic]

Yes. Oil won't die. It will be around for longer than we think, we just have to live with its pollution. For solar energy, and battery technology - look at what's happening elsewhere in the world. Electric cars are no longer just articles in science journals. Tesla is building a humongous battery facility for their cars somewhere in the States, and going into China big time. PRC has her own electric cars waiting to be unleashed into the world's largest automobile market - at home in China. Japanese manufacturers already have models being sold in the US and at home. Harley-Davidson is going to produce electric motorcycles, and these aren't economical models (like the pee-wee mopeds we see around here), but high-end models for the enthusiasts. We are seeing the dying days of the internal combustion engine now.

Cheers!

Frenchbriefs is correct. The short term condition of the price of oil is fluctuations but it should rally. The other forms of renewable energy wont kick in so soon. Solar, wind and other forms are not that developed yet so not economically viable. Nuclear energy is a bit tricky. How do you trust countries like those in the Middle East and Indonesia with nuclear material when they can either turn into rogue states or the facilities hijacked and the nuclear material ending up in the wrong hands.
Oil will still be black gold for the time being and I will be investing in counters like Keppel when it dips closer to $5.