July 14, 2021 | Daily JAM |
The dispute over oil production quotas between Saudi Arabia and the United Arab Emirates that blew up the OPEC+ meeting two weeks ago looks to be over. Under the compromise, the UAE will see its baseline production level rise to 3.65 million barrels per day when the current pact expires in April 2022, a source told Reuters. The current baseline for the UAE was around 3.17 million barrels per day. In exchange the UAE agreed to a Saudi proposal to extend the April 2022 production agreement until December 2022.
July 7, 2021 | Daily JAM, Videos |
I’m starting up my videos on JubakAM.com again–this time using YouTube as a platform. The thirty-second YouTube video “OPEC and the threat to green energy stocks” went up today.
July 6, 2021 | Daily JAM, Morning Briefing |
The Organization of Petroleum Exporting Countries and its affiliated oil producers (OPEC+) abandoned their Monday meeting after days of tense talks failed to result in an agreement on a tentative deal to increase production, and even over how to measure production. The disagreement between Saudi Arabia snd the United Arab Emirates was so heated that OPEC+ couldn’t even agree on a date for its next meeting. When these two countries last clashed in December 2020, the UAE talked of leaving OPEC. Oil prices initially jumped to its highest level in more than six years on news that OPEC+ had failed to agree to increase production. But prices then fell as traders speculated that the failure to reach an agreement on production increases would result in unplanned increases in production.
May 26, 2021 | Daily JAM, Dividend Income, KMI |
Like many oil-related stocks Kinder Morgan (KMI), the operator of 70,000 miles of natural gas pipelines, has moved up strongly during the recent rally in the price of oil. The stock, a member of my Dividend Portfolio since February 24, 2016, has gained 38.13% in 2021 to date as of the May 26 close. The stock has gained 26.67% in the last three months and 10.11% in the last month. The dividend, which produces a yield of 5.89% isn’t in danger. And I’m not selling because I’m worried about that potential. But growth at Kinder Morgan depends on the company’s ability to buy or build new pipeline capacity and earn a high rate of return on that investment.
January 5, 2021 | Daily JAM |
Today, January 5, Saudi Arabia shocked OPEC+ with a voluntary 1-million-barrel-per-day output cut. The announcement came after OPEC and Russia agreed to allow a 75,000 barrels a day increase in total production from Russia and Kazakhstan in February and March. On the news U.S. benchmark West Texas Intermediate climbed 5.00% to $50 a barrel and international benchmark Brent gained 5.05% to $53.67 a barrel.
December 29, 2020 | Daily JAM |
Oil managed to close to the upside today, December 29, even though OPEC+ is set to add another 500,000 barrels a day to output starting in January.
November 16, 2020 | Daily JAM |
Maybe OPEC+ didn't get the memo--you know the one that says a coronavirus vaccine is just around the corner and growth in the global economy will be strong enough to spur higher demand for oil. Today, the Joint Technical Committee of OPEC+, OPEC plus Russia in general...
October 20, 2020 | Daily JAM, PE, Stock Alerts |
A day after ConocoPhilips (COP) announced it would buy big Permian Basin oil shale play Concho Resources (CXO) for $9.7 billion, the Wall Street Journal reported that Pioneer Natural Resources, by some measures the biggest oil shale operator in the Permian Basin, is...
October 18, 2020 | Daily JAM, Saturday Night Quarterback |
... OPEC's Monday meeting to roil oil markets. Even if the meeting doesn't make any decision on supply. (Likely at the cartel's December 1 meeting of oil ministers. Tomorrow's meeting is of the Joint Ministerial Monitoring Committee, chaired by Saudi Arabian Energy...
October 9, 2020 | Daily JAM, Short Term |
Even as Hurricane Delta bears down on the Gulf Coast, oil prices fell today on news that oil workers in Norway had settled a strike that had shut down about 8% of the country’s production. The settlement will restore production at six fields already shut down by the...
October 4, 2020 | Daily JAM, Friday Trick or Trend |
Our regular (or occasional or perhaps occasionally regular) Friday series (actually running Sunday this week) Trick or Trend looks at what might (or might not) be emerging investible trends. Exclusively on JAM. This post won't run anywhere else. Ever. Oil prices took...
August 14, 2020 | Daily JAM |
The number of active oil rigs in the United States fell by 4 to 172, Baker Hughes reported today. That's the lowest level since 2005 in the days before the U.S. oil shale boom. The news is likely to get worse for U.S. producers and oil service companies. The number of...
