GARY KAPANOWSKI: Where is the $100 price for an oil barrel?

As oil producers clear their long term investments in oil drilling, the price of oil continues to slide, hovering around $50 per barrel.  With many experts forecasting this level for many years, we need to fully understand the issues behind the price.  Supply increased over the last decade mainly due to shale and the overall […]

GARY KAPANOWSKI: Price break point for an oil global recession

In a study of 306 investment professionals, the question posed was what price point for oil will trigger a global recession, i.e. the canary in a coal mine.  The results may enlighten your investment decisions as we rebalance our portfolios and strategies: 62% believe that below $30 will start a global recession 68% believe oil […]

GARY KAPANOWSKI: The Call of $50 Oil was here

Well….not here literally.  Shawn Driscoll, manager of the T. Rowe Price New Era Fund PRNEX which focuses on natural resource stocks, explained that he was tracking the opposite direction of oil’s demand and supply.  The biggest surprise was the suddenness of the drop.  The operating cost curve for the oil industry is about $40 a […]

GARY KAPANOWSKI: Perhaps you missed it – We’re at war with Russia

This article accurately describes the lack of education and professionalism with some journalist that can be identified by the public.  There are quite a few glaring assertions that by the end of the article I thought I was reading a comic spoof on the subject. I guess the journalist forgot to ask the families of […]

GARY KAPANOWSKI: Oil-soaked nations are biggest losers in this price war

The losers in any price war will be who is left with the inventory since the price of that commodity is falling faster than when they bought or made the product.  The article describes a new term in this economic price environment:   “quantitative greasing”.  It’s catchy and accurate.  So far, we have witnessed a $1.3 […]

Gary Kapanowski: OPEC’s squeeze on U.S. oil independence could succeed

With the price of Oil at 1979 prices, adjusted for inflation, it a good time to understand how did we get here.  Many oil experts agree that the weak demand contributes 30%-40% of the decline while the increased supply accounts for 60%-70%.  In summary, oil demand was projected at 1.3 million barrels per day but […]

Gary Kapanowski: UAE oil minister says OPEC won’t budge on output decision

Having several economic issues confusing many experts is great theatre.  Take for instance the drop in oil.  You do not hear anyone claiming the predicted this bottom and hit on all of their short positions.  There are a few analysis that claim they recommended investors to hold on oil since there was going to be […]

Gary Kapanowski: Here’s what it will take for oil prices to find a floor

Finding the floor in a market is always difficult.  Many experts call it the falling knife, do not get cut.  Here are several items to consider when trying finding the bottom in oil prices. The production cuts outside of OPEC need to occur. The problem is that most of these countries have per barrel operating […]