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Business/Finance See other Business/Finance Articles Title: Time to sell oil stocks What's Killing the Price of Oil 1. Inventory Jumps to 23-Year Highs Last week the American Petroleum Institute said domestic crude stocks jumped to 7.8 million barrels — nearly four times the expected 2 million barrel increase. For the record, oil was trading at $12 a barrel 23 years ago. 2. The Saudi’s Whine, "Too Much Oil!" Reuters has reported: “Saudi Oil Minister Ali al-Naimi said in Tokyo on Wednesday there is a surplus of oil in the market. Top oil exporter Saudi Arabia is pumping around 10 million barrels per day (bpd) and is storing 80 million barrels to meet any sudden disruption in supplies, Naimi said on Tuesday.” 3. Department of Energy Boosts U.S. Output U.S. oil production will average 6.2 million bpd this year — 500,000 bpd higher from last year — according to the DoE. 4. Iran Is Priced In Iran is still selling oil to India, China, and Turkey. The Iranian issue is priced in and will likely be an issue for an oil price decline due to cheating. All of these situations point to a cyclical downturn in oil prices. But wait, there’s more... 5. Exxon Death Cross Take a look at ExxonMobil (XOM), our $388 billion oil company... death cross As you can see by this five-year chart, every time the share price crosses the 100-day moving average (gold line), the price tanks. This bearish signal just went off again. Exxon’s share price will drop to $70. Here is a chart for light crude going back to 1971: cllightcrudechart You will notice the chart is showing lower highs and is at the top of its range. This chart suggests oil prices are going back to $85. You will also notice that when oil prices sell off, they sell off fast. And One More... 6. Oil Companies Aren’t Buying Ernst & Young picked up the phone and found: ... just 31% of the 141 oil and gas executives surveyed in April said they expected to pursue an acquisition in the next 12 months, down from 48% in October 2011, and the lowest figure since the barometer began in 2009. By contrast, the number of businesses looking to sell assets has risen by more than 27%. Hmmm, the smart money is selling. That’s doesn’t bode well for higher oil prices. However, low oil prices will be good for other companies... A drop in oil prices might just be the ticket to launch the U.S. economy above 3% GDP growth and send the Dow to new highs. There are a number of companies that benefit from cheap energy. It’s time to switch from the U.S.-based oil producers to the U.S.-based oil users. All the best, Christian DeHaemer Editor, Wealth Daily Publisher's Note: Help us get to 10,000 fans on Facebook. Follow us today and you could win a FREE lifetime membership to The Wealth Advisory. We'll announce the winner once we hit 10,000 fans. Like us today — click this link. Forward this to a Friend | Refer a Friend to Wealth Daily Post Comment Private Reply Ignore Thread Top • Page Up • Full Thread • Page Down • Bottom/Latest
#1. To: Tatarewicz (#0)
The Freaking-Fracking is driving prices to the curb !
"The few who understand the [FEDERAL RESERVE] system will either be so interested in its profits or be so dependent upon its favours that there will be no opposition from that class, while on the other hand, the great body of people, mentally incapable of comprehending the tremendous advantage that capital derives from the system, will bear its burdens without complaint, and perhaps without even suspecting that the system is inimical to their interests." The Rothschild brothers of London writing to associates in New York, 1863.
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