Oil, Gas & Energy Trading Thread

[KissMy]

Oil, Gas & Energy Trading Thread

 

[KissMy]

There is some serious money to be made from the spread between WTI crude & light Louisiana crude crude oil. It is above record highs & now at $24. I think the spread will collapse & Libya might kick it off.

It cost a lot less than $24 to ship crude from Texas to Louisiana. The High Brent price is due to Libya. The high Brent price pushed up most of our imports coming into Louisiana thus driving up the price of light Louisiana crude crude oil. The WTI is mostly land locked & currently does not reflect global oil price. Either Qaddafi falls & brings down Brent crude prices or someone starts transporting the hell out of WTI to Louisiana to bring the spread down to $8.

 

[KissMy]

Tripoli falls to Libyan rebels

 

[Mr. H.]

I'd rather punch holes in the ground using other people's money.
It's much more fun and exciting and potentially more profitable.

Oh- and there's a chance you'll find real oil, not paper oil.

 

[TruthSeeker56]

These Wall Street speculators and commodities hacks make me PUKE. But in the end, they'll get theirs, when all of their PAPER WEALTH becomes WORTHLESS. I look forward to that day, and it's coming sooner than later.

Silver and a little gold. The ONLY alternative to paper.

 

[waltky]

Good news for the oil markets and gas prices...

Oil market's 'knee jerk reaction' to Libya
August 22, 2011: Oil prices were mixed Monday as Moammar Gadhafi's regime appeared to be closer to tottering on the brink of defeat.

Brent oil, which is tied to the European market, dropped 1% to $107.55 a barrel, while U.S. crude prices rose more than 1% to $83.46 a barrel. The disparity between the two prices is due to the fact that Brent will feel the more immediate impact from Libyan oil coming back online, whereas U.S. prices are more insulated.

Even though Brent crude prices are falling, it's unlikely that there will be a glut of oil flooding the markets anytime soon, said Dan Dicker, an oil trader for 25 years and the author of "Oil's Endless Bid: Taming the Unreliable Price of Oil to Secure Our Economy." "I see the price coming down on Brent as more of a knee jerk reaction," said Dicker, estimating that it will take a long time for Libyan oil to flow back into the market. "You're not going to see a barrel of oil from Libya for at least a year."

Manouchehr Takin, senior petroleum analyst at the Center for Global Energy Studies in London, said it's more likely to be a gradual flow. The state of the oil infrastructure in Libya remains uncertain, he said, and there could be unforeseen factors that would interfere with the resumption of production. For example, he said there was trouble bringing Iraq's oil supply back online after the U.S. invasion of 2003, because Iraqi engineers were being murdered by hardliners for cooperating with Americans.

Dicker said that Brent oil will probably recover in the next few days, once traders realize that Europe won't be flooded with fresh supply from Libya. "[Brent] might be a tremendous buy a week from now, when it becomes clear that nothing is going to happen for a year," he said. U.S. crude prices spiked in February, after protests in Libya quickly escalating into a full-on civil war.

MORE

 

[waltky]

Roller coaster ride in oil markets...

Oil Prices Surge on Eurozone Confidence
10/14/11 --- Oil prices charged higher Friday on a combination of renewed confidence in the resolution of the European debt crisis, a strong read on U.S. consumer spending, and a bullish Goldman Sachs report.

The December Brent crude contract was advancing $3.09 to $112.29 a barrel and West Texas Intermediate (WTI) light sweet crude oil for November delivery was adding $2.74 to $86.97, as the dollar slipped 0.6% against the euro. The typical discount of $23 that WTI has been trading against Brent widened to $25 Friday after the Dow Jones-UBS Commodity Index said this week it will add Brent crude to its index starting in 2012.

Crude oil prices were 13% above the lows of early last week after the markets received a boost of confidence from news that some officials from the Group of 20 leading economies were thinking of bolstering the International Monetary Fund's lending capacity in order to help stabilize the eurozone's debt crisis. Also encouraging was news that U.S. retail sales rose 1.1% in September, significantly stronger than the consensus call for a 0.7% increase.

These positive developments offset news that Standard & Poor's downgraded Spain's long-term sovereign credit rating to AA- from AA. "European officials are ironing out a plan to shore up the European economy to halt the spreading of the debt crisis -- including 'increased firepower' -- surreal amounts of cash from the IMF ... and U.S. Retail sales data came in better than expected," says Matt Smith, an analyst at Summit Energy, a subsidiary of Schneider Electric. "Pop goes the rally." Oil was also enjoying a risk premium stemming from ongoing tensions between the top oil-exporting nations of Iran and Saudi Arabia.

Also lifting prices was an analyst report form Goldman Sachs saying that crude oil conditions right now are tight and similar to those of the bull market of 2007, which led to WTI prices soaring to $145 a barrel. "Global OECD (the Organization for Economic Cooperation and Development) inventory levels are falling, rapidly," the Goldman Sachs report said. The report said that the latest inventory data from Europe, the U.S. and Japan suggests that total inventories are now 31 million barrels below their five-year seasonal average, and in absolute terms, crude inventories are back at their 2006 levels. "This move is more dramatic if we strip out the impact of the IEA release of strategic inventories that took place through July and August, which would put total inventories 69 million barrels below their seasonal average."

Source

 

[Mr. H.]

I'm in negotiations with a landowner to lease over 300 acres for a drilling program. My geologist estimates it could yield a million barrels recoverable.

Real oil vs paper oil.

 

[editec]

I'm in negotiations with a landowner to lease over 300 acres for a drilling program. My geologist estimates it could yield a million barrels recoverable.

Real oil vs paper oil.

Good luck to you.

 

[editec]

Looks to me like natural gas is going to become the number one home heating source.

Not a clue if market pricing has already taken this into account, but were I investing long term, I'd be looking to companies prepared (or preparing) to take advantage of that long term trend.

 

[Mr. H.]

U.S. companies are positioning themselves to compress the natural gas into liquid form, then export it.
Why not? We export ethanol.

 

[DDU]

Like.

 

[KissMy]

Enbridge is turning the pumps on around on it's Crushing Oklahoma to Gulf pipeline. This will reverse the flow of oil & collapse the price difference between WTI crude & light Louisiana crude crude oil. The oil price you see advertised is WTI & it has climbed & will climb even more yet gas at the pump has dropped & will go lower.

 

[Mr. H.]

And that's good news. Domestic U.S. oil producers deserve to be paid top dollar.

 

[stevemartin]

In this time oil,gas and all that thing is very expensive so use of that thing is limited in this time. Some country have not as much price because that have growth of oil and natural gas and also export them.

 

[editec]

There is some serious money to be made from the spread between WTI crude & light Louisiana crude crude oil. It is above record highs & now at $24. I think the spread will collapse & Libya might kick it off.

It cost a lot less than $24 to ship crude from Texas to Louisiana. The High Brent price is due to Libya. The high Brent price pushed up most of our imports coming into Louisiana thus driving up the price of light Louisiana crude crude oil. The WTI is mostly land locked & currently does not reflect global oil price. Either Qaddafi falls & brings down Brent crude prices or someone starts transporting the hell out of WTI to Louisiana to bring the spread down to $8.

The crude refined New Jersey?

Where's that come from?

 

[Mr. H.]

Here's a listing of NJ refineries:

New Jersey
Bayway Refinery (ConocoPhillips), Linden 230,000 bbl/d (37,000 m3/d)
Eagle Point Refinery (Sunoco), Westville closed 2010 145,000 bbl/d (23,100 m3/d)
Paulsboro Asphalt Refinery (NuStar Energy), Paulsboro 51,000 bbl/d (8,100 m3/d)
Paulsboro Refinery (PBF Energy Corporation), Paulsboro 160,000 bbl/d (25,000 m3/d)
Perth Amboy Refinery (Chevron), Perth Amboy 80,000 bbl/d (13,000 m3/d)
Port Reading Refinery (Hess), Port Reading 70,000 bbl/d (11,000 m3/d)

More details here:

Listing of Refineries in NEW JERSEY - Refinery Listing

Regarding the Bayway refinery in Linden, crude is primarily supplied by tanker from the North Sea, Canada, and Africa:

http://www.conocophillips.com/EN/about/company_reports/fact_book/documents/Refining_Marketing.pdf

 

[KissMy]

Lack of key pipelines is the reason that gas prices in Montana & Wyoming are $2.93 while they are $5 in California, Oregon, New York & Florida. It is also causing the $20 spread between WTI & Brent Crude.

 

[fdsgrs]

Good point

 

[KissMy]

There is some serious money to be made from the spread between WTI crude & light Louisiana crude crude oil. It is above record highs & now at $24. I think the spread will collapse & Libya might kick it off.

It cost a lot less than $24 to ship crude from Texas to Louisiana. The High Brent price is due to Libya. The high Brent price pushed up most of our imports coming into Louisiana thus driving up the price of light Louisiana crude crude oil. The WTI is mostly land locked & currently does not reflect global oil price. Either Qaddafi falls & brings down Brent crude prices or someone starts transporting the hell out of WTI to Louisiana to bring the spread down to $8.

The crude refined New Jersey?

Where's that come from?

The New Jersey Bayway Refinery gets oil from the North Sea, Canada and West Africa. They are paying the expensive Brent Crude Prices of $126.