Primed To Pop!
The Petroleum market charts(NYMEX:CLJ14) seem to suggest that they are not buying the fact that this crisis in the Ukraine is over. Even after the markets pulled back the charts seem to suggest that the markets are prepared to pop after the first time that Gazprom hints that they will cut Ukraine natural gas supply.
Crimea gas supply is another reason and off shore oil is another reason that Russia wants control. Shale experts believe that Ukraine could be me a major source of shale gas supply. Fear that Ukraine will start producing its own supply is a fear that goes beyond Putin’s dream of a new Russian federation.
Fracking technology could unleash a flood of Crimea natural gas supply that could squeeze the Russian monopoly on supply. In fact before Russia folly Ukraine was going to host a summit on Fracking and many US companies have a strong interest. We know it was that Ukraine’s movement towards fracking was bothering Russia as they started to complain about the potential pollution that could be caused by Ukrainian fracking. In the meantime high stakes negotiations are going on and the market’s halfhearted retreat matches the halfhearted pullback by the Russian military.
At the same time the market has to worry about the strength of the emerging markets. Shanghai Chaori Solar Energy Science and Technology Co Ltd. will most likely default on bond payments and the market while hopeful that this won’t start a chain reaction it is another reason to reduce exposure to credit risk in China.
Qatar tensions
Reports that Saudi Arabia, the United Arab Emirates and Bahrain have said they are withdrawing their ambassadors to Qatar because Doha had not implemented an agreement among Gulf Arab countries not to interfere in each other’s internal affairs. The three countries said the move was necessary "to protect their security and stability". Stay tuned!
About the Author
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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