The Wall Street Greek blog is the sexy & syndicated financial securities markets publication of former Senior Equity Analyst Markos N. Kaminis. Our stock market blog reaches reputable publishers & private networks and is an unbiased, independent Wall Street research resource on the economy, stocks, gold & currency, energy & oil, real estate and more. Wall Street & Greece should be as honest, dependable and passionate as The Greek.
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Wednesday, June 22, 2016
Oil Prices will Fly to New High
Oil prices are rising along with other risky assets as a key risk appears to be coming off the table. With the Fed cleared away (for now) and with Brexit seemingly about to be resolved favorably, oil prices have been freed to fly. Crude also continues to benefit from seasonal favor, though higher prices could eventually draw new supply action from our competitors to the east. As discussed in my last article on that issue, oil should retrace highs near-term nonetheless. See the whole story at Oil Prices are Free to Fly.
Energy Complex
AM Indication
SPDR S&P 500 (NYSE: SPY) for comparison
+0.1%
United States Oil (NYSE: USO)
+0.8%
iPath S&P GSCI Crude Oil (NYSE: OIL)
+1.6%
Energy Select Sector SPDR (NYSE: XLE)
+0.4%
SPDR S&P Oil & Gas E&P (NYSE: XOP)
+1.6%
VanEck Vectors Oil Services (NYSE: OIH)
+0.3%
Exxon Mobil (NYSE: XOM)
+0.1%
Chevron (NYSE: CVX)
+0.1%
BP p.l.c. (NYSE: BP)
+0.9%
Total S.A. (NYSE: TOT)
+0.0%
ConocoPhillips (NYSE: COP)
+0.5%
Royal Dutch Shell plc (NYSE: RDS-A)
+0.6%
Marathon Oil (NYSE: MRO)
+2.1%
Pioneer Natural Resources (NYSE: PXD)
+0.3%
Chesapeake Energy (NYSE: CHK)
+1.7%
Schlumberger (NYSE: SLB)
+0.4%
Please see our disclosures at the Wall Street Greek website and author bio pages found there. This article and website in no way offers or represents financial or investment advice. Information is provided for entertainment purposes only. Article interests energy investors including Exxon Mobil (NYSE: XOM), BP (NYSE: BP), PetroChina (NYSE: PTR), Petrobras (NYSE: PZE), Royal Dutch Shell (OTC: RYDAF.PK), Total (NYSE: TOT), Chevron (NYSE: CVX), Repsol (OTC: REPYY.PK), ConocoPhillips (NYSE: COP), Eni SpA (NYSE: E), Sasol (NYSE: SSL), Encana (NYSE: ECA), Suncor (NYSE: SU), Imperial Oil (AMEX: IMO), Statoil (NYSE: STO), Cenovus (NYSE: CVE), Transocean (NYSE: RIG), Penn West Petroleum (NYSE: PWE), Continental Resources (NYSE: CLR), Noble (NYSE: NE), Concho (NYSE: CXO), Diamond Offshore (NYSE: DO), Ensco (NYSE: ESV), Whiting Petroleum (NYSE: WLL), Nabors (NYSE: NBR), Pride International (NYSE: PDE), Helmerich & Payne (NYSE: HP), QEP Resources (NYSE: QEP), Enerplus (NYSE: ERF), Rowan (NYSE: RDC), Cobalt (NYSE: CIE), Patterson UTI (Nasdaq: PTEN), SandRidge (NYSE: SD), Schlumberger (NYSE: SLB), Halliburton (NYSE: HAL), National Oilwell Varco (NYSE: NOV), Baker Hughes (NYSE: BHI), Weatherford International (NYSE: WFT), Cameron (NYSE: CAM), FMC Tech (NYSE: FTI), Oil States International (NYSE: OIS), Superior Energy (NYSE: SPN), Carbo Ceramics (NYSE: CRR), Helix Energy (NYSE: HLX), Pioneer (NYSE: PXD), CNOOC (NYSE: CEO), China Petroleum and Chemical (NYSE: SNP), Ecopetrol (NYSE: EC), Canadian Natural Resources (NYSE: CNQ), Apache (NYSE: APA), Anadarko (NYSE: APC), Devon (NYSE: DVN), EOG (NYSE: EOG), Chesapeake (NYSE: CHK).
At the start of the month I suggested investors protect wealth due to “the many perils of June.” We have seen volatility since, but a couple important changes in underlying factors call for a change in sentiment now. Even so, the early gains we are seeing today could very well give way again this week, opening up another opportunity to buy on the dip ahead of what I have always expected and suggested would be a “remain” vote in the U.K. referendum. See the whole story at Stocks will Soar to New High.
Everybody and his financial planner seem to favor gold these days, at least on the parallel reality that is business television. Some like gold because of the current uncertainty plaguing Europe, with the upcoming Brexit vote in focus. Others proclaim gold’s merits because of the Fed’s decision to refrain from rate action in June, and because of the market’s expectation for no action until December. But gold favor based on these factors is set upon false premise, in my view, and so a gold bubble has been inflated. I expect it will burst as current expectations are replaced by a different reality over the next couple months. Thus, I continue to recommend the sale of gold securities and also hedging against long-term physical gold holdings, which are always recommended for long-term diversification and wealth protection. See this full story at Gold Bubble - Part I (on Brexit).
The latest weekly rig count data produced by Baker Hughes (NYSE: BHI) showed the third straight increase in active North American drilling rigs. The relatively higher price of oil has producers in both the U.S. and Canada expanding operations in June. But that is precisely what Saudi Arabia has been suffering to stop, and so increased investment activity could lead Saudi Arabia to boost production soon. The ripples of such an action might be big, but only if other energy sector dynamics matter less. See this full report at The Snake Also Rises - Saudi Arabia's Response to Rising Rig Counts.
Energy Relative Shares
Week Ended 06-17-16
SPDR S&P 500 (NYSE: SPY)
-1.7%*
United States Oil (NYSE: USO)
-1.8%
iPath S&P GSCI Crude Oil (NYSE: OIL)
-2.5%
United States Natural Gas (NYSE: UNG)
+2.4%
Energy Select Sector SPDR (NYSE: XLE)
-0.0%*
SPDR S&P Oil & Gas E&P (NYSE: XOP)
-0.3%*
Market Vectors Oil Services (NYSE: OIH)
-0.6%
Exxon Mobil (NYSE: XOM)
+0.8%
Chevron (NYSE: CVX)
-0.4%
B.P. (NYSE: BP)
+1.6%
ConocoPhillips (NYSE: COP)
-0.8%
Phillips 66 (NYSE: PSX)
-1.9%
Occidental Petroleum (NYSE: OXY)
-0.7%
Schlumberger (NYSE: SLB)
-1.3%
Halliburton (NYSE: HAL)
-0.6%
Chesapeake Energy (NYSE: CHK)
+2.0%
Pioneer Natural Resources (NYSE: PXD)
-3.2%
Please see our disclosures at the Wall Street Greek website and author bio pages found there. This article and website in no way offers or represents financial or investment advice. Information is provided for entertainment purposes only. Article interests energy investors including Exxon Mobil (NYSE: XOM), BP (NYSE: BP), PetroChina (NYSE: PTR), Petrobras (NYSE: PZE), Royal Dutch Shell (OTC: RYDAF.PK), Total (NYSE: TOT), Chevron (NYSE: CVX), Repsol (OTC: REPYY.PK), ConocoPhillips (NYSE: COP), Eni SpA (NYSE: E), Sasol (NYSE: SSL), Encana (NYSE: ECA), Suncor (NYSE: SU), Imperial Oil (AMEX: IMO), Statoil (NYSE: STO), Cenovus (NYSE: CVE), Transocean (NYSE: RIG), Penn West Petroleum (NYSE: PWE), Continental Resources (NYSE: CLR), Noble (NYSE: NE), Concho (NYSE: CXO), Diamond Offshore (NYSE: DO), Ensco (NYSE: ESV), Whiting Petroleum (NYSE: WLL), Nabors (NYSE: NBR), Pride International (NYSE: PDE), Helmerich & Payne (NYSE: HP), QEP Resources (NYSE: QEP), Enerplus (NYSE: ERF), Rowan (NYSE: RDC), Cobalt (NYSE: CIE), Patterson UTI (Nasdaq: PTEN), SandRidge (NYSE: SD), Schlumberger (NYSE: SLB), Halliburton (NYSE: HAL), National Oilwell Varco (NYSE: NOV), Baker Hughes (NYSE: BHI), Weatherford International (NYSE: WFT), Cameron (NYSE: CAM), FMC Tech (NYSE: FTI), Oil States International (NYSE: OIS), Superior Energy (NYSE: SPN), Carbo Ceramics (NYSE: CRR), Helix Energy (NYSE: HLX), Pioneer (NYSE: PXD), CNOOC (NYSE: CEO), China Petroleum and Chemical (NYSE: SNP), Ecopetrol (NYSE: EC), Canadian Natural Resources (NYSE: CNQ), Apache (NYSE: APA), Anadarko (NYSE: APC), Devon (NYSE: DVN), EOG (NYSE: EOG), Chesapeake (NYSE: CHK).
The Federal Reserve’s Federal Open Market Committee (FOMC) met last week and issued new monetary policy Wednesday afternoon. Judging by the market’s initial reaction and criticism, I get the feeling many of the expert pundits and reporters haven’t actually read the Fed’s comments carefully or fully understood the Fed’s message. It’s quite unfortunate, but it made for opportunity, and continues to do so. In this report, I review what the Fed really conveyed to us, versus what you’ve been led to believe by pundits, reporters and the market’s initial reaction. And I lay out my expectations for the Fed moving forward. See this full report at Don't Hate the Player, Hate the Game.
I called the market pivot before it happened on Friday:
