Hurricane Can’t Whip Up Higher Prices
Source: http://blogs.moneyandmarkets.com/blog/red-hot-energy-and-gold/0/0/hurricane-cant-whip-up-higher-prices-Posted on Thursday, September 11th, 2008 | In Energy Markets, Gold Markets
Oil continues to look bearish, especially as it is not rising even as a new hurricane bears down on the Texas Coast.
This track is especially alarming because the projected path has shifted north and east in the last 24 hours. If that track continues to shift, the impact on America’s oil, gas and refining capacity could be extreme.
Within the (current) storm path lies about 5 million barrels per day (bpd) of US petroleum refining capacity. To put that in perspective, 5 million bpd is about 30% of US capacity, and a bit less than 6% of global capacity (about 85 million barrels per day)
Also, the MMS reported Wednesday that staff has been evacuated from 452 production platforms (63%) and 81 rigs (66.9%). Finally, 95.9% of Gulf oil production and 73.1% of natural gas production has been shut-in as a precautionary measure.
And yet oil goes down. I’m not saying the market is wrong. But obviously the market is predicting our oil use is about to fall off a cliff.
Last 5 posts by Sean Brodrick
- The Golden Phoenix - February 25th, 2009
- Blessing in Disguise - February 4th, 2009
- What I'm Reading Today - January 7th, 2009
- Gold and Oil Short-Term Trends - January 7th, 2009
- Is Gold Poised for a Pullback? - January 6th, 2009
America, Energy Markets, Gold Markets, natural gas production, Oil, oil production, oil use, Texas Coast, United States, Up Higher Prices
 About Sean Brodrick (http://blogs.moneyandmarkets.com/blog/red-hot-energy-and-gold)
Sean Brodrick joined Weiss Research in 2000 as an analyst, bringing more than 25 years experience as a journalist and financial analyst to the position. He is Weiss Research’s small-caps specialist, especially in natural resources, and is the editor of the company’s Red-Hot Canadian Small-Caps, as well as a regular contributor to its daily e-letter, Money and Markets. Previously, Mr. Brodrick was the investment director of The Sovereign Society, the world’s leading publisher of offshore asset protection strategies and global investment opportunities. Recognized for his expertise on natural resources and Canadian and Australian investment opportunities, Mr. Brodrick has been featured on many financial talk shows, including CNBC Squawk Box, Fox Business, CNN, The Glenn Beck Show, Your World with Neil Cavuto and Bloomberg Market Line. He is a weekly guest on Market Matters Radio, a contributing columnist to MarketWatch.com and a frequent commentator on one of Canada’s premiere financial websites, HoweStreet.com. His report, “70 Days to Empty,” has garnered acclaim for its analysis of the forces pushing America toward its next oil crisis and was described by The Daily Reckoning as “the most important report you’re likely to read this year,” while his knowledge of uranium has helped investors earn solid gains on the commodity. Mr. Brodrick holds a B.A. degree from the University of Maine. |
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