Oil backtracking as China manufacturing falls

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Also the WSJ reports on something I mentioned and that is Russia is being forced to play nice. "In Europe, where Gazprom once had a reputation for hardball tactics and dictating prices, customers are tapping new sources. Booming shale-gas production in the U.S. has freed up vast quantities of other fuel from around the world, including American coal no longer needed at home. With that new leverage, Gazprom's European customers have squeezed billions of dollars in discounts from the company, and they are pressing for more. Europe is Gazprom's most lucrative market. The company supplies about one-quarter of the European Union's natural gas via a network of pipelines. Gazprom said Tuesday its net profit declined by $6.5 billion, or 15%, in 2012, as sales to the EU fell by about 9%. Gazprom has been the flagship of Russian leader Vladimir Putin's drive to make Russia an energy superpower. The company, which also controls Russia's fourth-largest oil producer, was created two decades ago out of the Soviet Ministry of Gas and is majority-owned by the state. By law, it is the only Russia.”

Gas prices are falling! Dan Strumpf of Dow Jones reports, "Here's a rare piece of good economic news: Motorists are paying the cheapest springtime gasoline prices in three years. And prices could continue falling into the summer. A gallon of regular gasoline fell about 13 cents a gallon during a month of April and averaged $3.55, according to auto club AAA. That's the cheapest price for the fuel in April since 2010. The auto club attributes the decline to a recent pull-back in oil prices. If the recent trend continues, gasoline prices could fall to between $3.20 to $3.40 by mid-summer, AAA says."  Of course readers of The Energy Report expected this as we said this would happen months ago.

About the Author
Phil Flynn

Senior energy analyst at The PRICE Futures Group and a Fox Business Network contributor. He is one of the world's leading market analysts, providing individual investors, professional traders, and institutions with up-to-the-minute investment and risk management insight into global petroleum, gasoline, and energy markets. His precise and timely forecasts have come to be in great demand by industry and media worldwide and his impressive career goes back almost three decades, gaining attention with his market calls and energetic personality as writer of The Energy Report. You can contact Phil by phone at (888) 264-5665 or by email at pflynn@pricegroup.com. Learn even more on our website at www.pricegroup.com.

 

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