Daily Commentary From OilSlick.com

Pivotal Market Day

5/22/2013 5:06:20 PM: The Dow rose +155 intraday before collapsing to lose -110 before ending with a -80 point loss. This outside day indicator typically indicates a change in market direction. We are due for a correction but one day does not make a trend. Continue reading

No Rest for Transocean, BP, Halliburton

5/19/2013 8:14:02 PM: The Deepwater Horizon disaster is the gift that keeps on giving. The State of Texas filed suit against the major parties for damages. The list of entities lining up for their share of the pie seems endless. Continue reading

Expiration Jitters

5/15/2013 7:49:58 PM: Brent declined -1.50 intraday then rebounded +2.50 as traders raced to cover positions ahead of contract expiration at the close. This is just one more sign of confusion in the broader market. Continue reading

Bullet Proof Oil

5/12/2013 7:54:07 PM: The price of WTI declined -$3 intraday on Friday but recovered all of it before the close. For now the $96 level appears to be resistance but WTI is sticking very close. Continue reading

Still No Weakness

5/8/2013 6:28:15 PM: WTI crude prices continue to hold at five week highs despite record U.S. production. Worries over events in the Middle East and the falling dollar helped provide support. Continue reading

Oil Had a Good Week

5/5/2013 6:45:48 PM: It was a good week for energy stocks with Wednesday's big drop in crude prices erased less than 24 hours later. The jobs surprise boosted expectations for demand and prices for WTI are back near their recent highs. Continue reading

Inventory All Time High

5/1/2013 8:09:16 PM: The EIA reported crude oil inventories of 395.3 million barrels. That exceeds the prior high of 391.9 million in July 1990. We have been expecting this for a couple months but the market was shocked by the number and crude prices imploded. Continue reading

What a Difference a Day Makes

4/24/2013 7:04:54 PM: A couple of economic numbers and an analyst comment or two can quickly change the outlook for a sector and a market. WTI has gained $5 since last Wednesday's lows at $86.36 and nothing has really changed in the economic outlook. The expectation for additional stimulus by the ECB was the fuel for the rally. Continue reading

Energy Earnings Arrive

4/21/2013 9:21:09 PM: After a bad two weeks for crude prices we will have earnings to take our focus off oil. Earnings should be decent for producers with WTI near $100 in early February. Next quarter could be a different story. Continue reading

Bad to Worse

4/17/2013 6:56:51 PM: The commodity decline due to negative global economics continues to worsen with crude prices falling to nine-month lows. While this will be good for the U.S. consumer it has translated into a serious decline in energy equity prices. Continue reading

Commodity Implosion

4/14/2013 6:18:11 PM: Fears of weak demand as a result of declining economics combined to push commodity prices to multi-month lows. WTI crude fell -$2.85 on Friday to $91. Brent declined -1.16 to $103. Continue reading

Record U.S. Production

4/10/2013 6:07:21 PM: Crude oil production in the USA rose to 7.181 mbpd last week and the highest level since June 1992. That is more than 1.0 mbpd over the 6.04 mbpd produced in the same week in 2012. Continue reading

The Pause That Refreshes

4/3/2013 7:34:54 PM: The long awaited pause for profit taking finally arrived. Now the only question is where will it stop? Is this a dip or a correction? Is it temporary or will it last for weeks? Continue reading

Gas Rigs at 14-Year Low

4/1/2013 2:24:20 PM: The lure of higher priced oil continues to take its toll on the gas drilling industry. The number of rigs actively drilling for gas declined by -29 last week to 389 and a 14-year low. Meanwhile gas production is still rising. Continue reading

$4 Natural Gas

3/27/2013 5:04:21 PM: Natural gas futures spiked over $4 on Wednesday as short covering continues. Gas was heavily shorted in expectations of the normal spring decline but storm after storm has pushed sentiment higher and hedgers are being forced to cover. Continue reading

Inventories, Copper, Schlumberger, BP, FOMC

3/20/2013 6:56:18 PM: The FOMC said there were no changes to the QE policy and reiterated the 6.5% unemployment and 2.5% inflation thresholds for future changes. This was no surprise but the dollar did decline and crude prices rose. Continue reading

Brent Suffering Expiration Blues

3/13/2013 6:55:24 PM: With the current month Brent contract expiring on Friday we are seeing some selling pressures. WTI and Brent spreads are narrowing but there is no real reason until late this year when the pipelines begin to flow. Continue reading

Spring Inventory Build Begins

3/6/2013 6:13:09 PM: The surge in crude inventories has begun as refinery utilization declined sharply. We are only six million barrels below a 22 year high in crude inventories. Continue reading

Energy Markets in Decline

3/3/2013 8:21:56 PM: Brent crude declined -$3.50 and WTI -$2.34 after economic numbers from China and Europe showed a dramatic decline in activity. Bad economics coupled with a sharp spike in the dollar crushed all commodities including oil, precious metals, copper, aluminum and steel. Continue reading

Same Story, Same Outcome

2/27/2013 6:56:39 PM: Iran and the six UN nations met in Almaty and no agreement was reached other than to meet again in the future. Despite an attractive offer to drop some sanctions against Iran the meeting ended just like every other meeting over the last 12 years and that is with no changes. Continue reading

BP, Iran and Inventory Builds

2/24/2013 8:04:01 PM: WTI crude declined from $98.60 to $92.89 in six days. There were various factors to blame but it was really just profit taking from the December to January rally. Continue reading

Iran, Gas, Alaska, Gold and Silver

2/17/2013 8:42:33 PM: The supreme leader of the Iranian people threw down the gauntlet over the nuclear issue on Friday with statements sure to increase sanctions on Iran. Continue reading

Iranian Rope-A-Dope

2/13/2013 7:19:37 PM: Nothing changed in the negotiating tactics employed by Iran in its meeting with the IAEA this week. Talks with the IAEA ended abruptly not long after they started Continue reading

New Highs for Brent

2/10/2013 7:29:58 PM: There is no stopping Brent as the price for the highly indexed commodity continues to move higher. Brent reached a new nine month high on Friday at $119. Continue reading

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