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: 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 […]

Gary Kapanowski: Here are the reasons oil is plunging

The 44% drop in oil price at the end of 2014 continues to confuse many experts.  There are several reasons for the issue.  This article lists all the reason with possible explanations.  I will list them here for your observation. Shade Oil Price War Weak Demand Geopolitical Fears Strong Dollar There are only three counties […]

Gary Kapanowski: 3 reasons to stop betting that oil will continue to plunge

With all the volatility in Oil, we see more experts on every business channel and beyond.  The correlation is almost 100%.  This increases the chatter and noise on the real question investors want to know:  when will oil stop falling?  This is a nice article which uses statistics to assist with answering that question.  We […]