Since the early 1970s, most major oil deals have been transacted in “petrodollars.”
But that system has become increasingly challenged in recent years.
The conflict in Ukraine right now has only served to exacerbate things.
despite the Russian-controlled natural gas pipelines under the Baltic Sea to northern Germany (Nord Stream) and across Belarus to Poland, most of the Russian natural gas coming to the continent still passes across Ukraine – about 80% in fact. And Europe is still reliant upon this energy flow despite attempts to diversify.
Despite the conflict between Russia and Ukraine, there are now mitigating factors that will help to stabilize gas prices, even if the Ukraine gas pipeline is disrupted…
In addition to all of its other problems, Ukraine is also at the center of an increasingly messy energy situation.
Thanks to additional new U.S. pipeline capacity and the growing volume of oil product exports from American refineries, the glut of excess storage at Cushing, Okla., is shrinking.
Late Friday afternoon, the Keystone XL crude oil pipeline cleared one of its biggest hurdles.
In its Final Environmental Impact Statement, the U.S. Department of State concluded that completing the pipeline’s northern leg would not have a major impact on global greenhouse gas emissions.
Last Wednesday afternoon, after much gnashing of teeth, the Fed finally revealed its long-awaited quantitative easing (QE) taper plans…
And the Dow jumped by almost 300 points.
If this is Thursday, it must be…Brazil.
I returned home late last night from Baltimore where we were putting the final touches on one of the best energy investments yet, a huge new precedent-setting play we’ll be releasing very shortly.
Oil prices slipped below $93 a barrel Tuesday, continuing a downward trend that started early last month.
Last week, oil prices fell 0.76%, logging a sixth weekly decline, the longest string of losses since 1998. Volume also slid, with futures roughly 41% below the 100-day average.
There is something very interesting developing in the oil markets right now.
It’s not front page news yet, but it is something that you’ll want to keep an eye on – especially if you want to make money with oil stocks.
It revolves around what’s called “the spread.” In this case it’s the difference in price between West Texas Intermediate (WTI) and Brent.
