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The Bear Market in Oil Is Over

Written by Gary North on May 9, 2015

oil-index

On December 16, 2014, I published an article for paid members of my GaryNorth.com site: “Saudi Arabia’s Oil Strategy.” I wrote the following about West Texas intermediate crude oil prices: WTI oil hit $37.51 in February 2009. This was in the midst of a major recession. It was back to $80 by late December. I […]

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Bust: Texas Shale Oil

Written by Gary North on March 24, 2015

texas-shale-oil

The shale oil bust has hit Texas. In 2008, it looked like there was no tomorrow. It was like Texas in 1980 — the sky was the limit. “Houston, we have a problem.” And then there was one. In October 2008, there were about 200 drilling rigs searching primarily for natural gas in the Barnett […]

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Oil Industry Bailout

Written by Gary North on March 14, 2015

oil-industry

When the federal government wants to bury a story, it releases it on Friday afternoon. This is part of the news cycle. It is too late for Friday evening news. Saturday is not a day for news. By Monday, the world has moved on. This report came on Friday afternoon. WASHINGTON, March 13 (Reuters) – […]

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Apple’s Electric Car

Written by Gary North on February 20, 2015

apple-tesla

The rumor is that Apple will start producing electric cars by 2020. Tesla Motors would then face some serious competition. If these sell, the next step will be self-driven cars. That may hit by 2025. Then taxicabs will no longer need drivers. We can see what’s coming: a shift away from gasoline for local driving. […]

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Junk Bond Oil Slick

Posted on January 27, 2015

oil-slick

By Wolf Richter Every rally in crude oil since June turned out to be a pathetic sucker rally. On Friday, West Texas Intermediate fell over 2% to $45.32 a barrel, back where it had been on January 12, annihilating most of the 12% rally in between. WTI is now 58% below the June peak. “If prices […]

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Oil Slick for Silly Investors

Posted on January 13, 2015

By Wolf Richter Wall Street spent years hyping, propagating, and funding the oil and gas drilling boom in the US. It handled the bonds and loans issued by often junk-rated companies. It instigated the waves of mergers & acquisitions, profiting every step along the way – advisory fees, bridge loans, syndication of loans, underwriting of […]

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Oil Price: “No Rebound”

Posted on January 13, 2015

ABU DHABI, Jan 13: OPEC won’t change its oil production strategy and any sudden rebound of prices is unlikely, United Arab Emirates oil minister Suhail bin Mohammed al-Mazroui said on Tuesday. Mazroui was speaking at an energy conference in Abu Dhabi as Brent crude oil dropped into the $46 a barrel area, almost a six-year […]

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Oil Bust: “Sell North Dakota; Buy Cleveland.”

Posted on January 7, 2015

Brent crude oil prices fell below $50 a barrel for the first time since May 2009 on Wednesday as global business growth slowed to its weakest in a year, and analysts said a growing supply glut meant more falls were likely. The pace of global business growth eased to its weakest rate in over a […]

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Oil Patch Bust — The Leveraged Disaster Has Begun.

Posted on January 6, 2015

By Harris Kupperman What is the senior debt on a shale play that needs $100 oil to be profitable worth? With oil at $51, it’s worth roughly zero. What is the equity worth? Even less. What is the junk debt worth? Somewhere in the middle. The first epiphany in the shale patch will soon be […]

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