OPEC+ carries through on yesterday’s leaks and cuts oil production; oil and oil stocks continue rally

OPEC+ carries through on yesterday’s leaks and cuts oil production; oil and oil stocks continue rally

Today, Wednesday, October 5, OPEC and its allies, including Russia, approved a two million barrel-a-day cut in oil production. This is the largest cut in production since the onset of the pandemic. Here’s the key paragraph in the OPEC+ statement: “Adjust downward the overall production by 2 mb/d, from the August 2022 required production levels, starting November 2022 for OPEC and Non-OPEC Participating Countries as per the attached table.” On the news, oil and oil stocks extended the rally that began on news leaks yesterday.

OPEC+ “considers” cutting oil production and oil and oil stocks surge today

OPEC+ “considers” cutting oil production and oil and oil stocks surge today

All it takes is a report that OPEC+, the group of oil-producing countries that includes Saudi Arabia and Russia, is considering a big cut in production at its meeting this week to send oil and oil stocks off to the races. As of noon New York time on Monday, U.S. benchmark West Texas Intermediate is up 4.21%, and international benchmark Brent crude is higher by 3.75%.

Repost and October 1 update: Special Report Your Best Investment Strategy for the Next Five Years

Repost and October 1 update: Special Report Your Best Investment Strategy for the Next Five Years

Today, October 1, I’ve gone back through this Special Report to update any parts of my calendar in light of what we’ve learned about the economy, about Federal Reserve interest rate policy, and about the global economy in the last few weeks. This update includes my take on the August jobs report and the September 21 meeting of the Fed. (It’s a complete revision of the original so changes are in the body of the original text.) It is different this time. And it’s likely to “be different this time” for the next five years or so. And you need an investment strategy for that period.

Repost and October 1 update: Special Report Your Best Investment Strategy for the Next Five Years

Repost and October 1 update: Special Report Your Best Investment Strategy for the Next Five Years

Today, September 5, I’ve gone back through this Special Report to update any parts of my calendar in light of what we’ve learned about the economy, about Federal Reserve interest rate policy, and about the global economy in the last few weeks. This update includes my take on the August jobs report and on recent Fed-speak from the Jackson Hole conference and after. It is different this time. And it’s likely to “be different this time” for the next five years or so. And you need an investment strategy for that period.

What to do about your oil stocks?

What to do about your oil stocks?

I’ve seen several comments on the site asking this question. I assume we’re talking about oil stocks in the short- and medium-term. In the long term, I think it’s clear that you should be thinking about selling these out of your portfolio at a profit (of course) whenever you can. Demand for oil will fall in the long-term–defining long-term as 5 years or more–or we can all count on figuring out how to survive 120-degree (Fahrenheit) heat. Today, August 5, is a good synopsis of what’s going on with oil and oil stocks in the short- and medium-term.

Please watch my new YouTube video: Trend of the week Give ‘Em the Cash

Please watch my new YouTube video: Trend of the week Give ‘Em the Cash

My one-hundredth-and-thirty-second YouTube video “Trend of the Week Give “Em the Cash” went up today. So far, so good this earnings season: oil and natural gas producers are holding the line on capital spending on new production, as they promised, and returning the huge increases in profits from the jump in oil and natural gas prices resulting from the Russian invasion of Ukraine and the sanctions slapped on Russian energy exports. And they’re returning those profits, as promised to shareholders as dividends. Big dividend payouts. Look at Pioneer Natural Resources (PXD), for example, which beat earnings for the first quarter and raised its dividend payout to what amounts to better than 11% annualized. I think we’ll see this trend continue for a while, especially as many CEOs stick to the path of putting fewer resources into new exploration and production because they can’t be sure how long the current level of prices will last.

Another round of higher oil prices headed our way

Another round of higher oil prices headed our way

Today, April 21, reports from a number of different sources are pointing to lower oil production–which will mean higher oil prices. Even from current levels. And oil prices are significantly higher in the past three weeks. At 3:00 p.m. New York time today U.S. benchmark West Texas Intermediate traded at $103.44 a barrel, up 1.61% on the day. On April 11 West Texas Intermediate traded for just $94.29 a barrel.

Please Watch my YouTube video: Trend of the Week: Don’t sell those oil stocks yet

Please Watch my YouTube video: Trend of the Week: Don’t sell those oil stocks yet

Don’t sell those oil stocks yet! Back at the beginning of the year, I anticipated that coming conflict between Russia and the Ukraine would drive up the price of oil, and the stocks I added to my portfoliohene stocks (COP, EQNR, LNG) have all been up big. But, I don’t think it’s time to sell yet. Why? Summer. Summer is the big driving season in the Northern Hemisphere, and right now (in what’s called the “shoulder season”) reserves of gasoline are supposed to be replenished in anticipation of summer. But that’s not happening due to Russia-Ukraine, and I think with summer we will see prices for oil spike even higher. That’s why I wouldn’t sell these stocks yet. (And that’s despite of the selling today, March 28, on more lockdowns in China)