The southern oil regions of Iraq are still pumping and exporting oil but the threat by ISIS and the Levant (ISIL), which are the successor organizations to al- Qaeda in Iraq are driving the risk premium in oil. ISIS threatened to continue their assault on Baghdad.
The U.S. oil boom has put European refineries out of business and undercut West African crude suppliers. Now domestic drillers threaten to roil Asian markets and challenge producers in the Middle East and South America.
Natural gas prices are being driven toward an upside breakout as an artic deep freeze challenges the nation. It also means that we will challenge record natural gas production and see how that will keep prices under control.
Rising yields should be raising eyebrows not only on the explosive stock market but also the global oil market. Oil tries to test $100 a barrel on light volume as the focus seems to drift away from inventories and more to a rising stock market.
As we come to the end of 2013, it’s a good time to reflect on some of the biggest resources stories of the year. One that immediately comes to mind is the U.S. energy resurgence and its tremendous effect on oil and gas.