Good interview, imo, with Chris Nelder on energy covering the key issues.
The energy sector is a high yielding sector at present. It is very likely, imo, that we get a dip in the next 6 months due to the worsening world wide data.
Post this energy stocks should rapidly reach new highs as fundamentally we have a big problem in terms of energy demand supply and monetary wise we will see the continued flite from fiat currencies. Geo politically prices could really shift to a new paradigm, imo.
Personally i would hold the core or 80% of the core. I would remove the leverage for the next 6 months or so from energy and buy any 10 to 20% dips. Option calls way out of the money, long dated are worth a bet, imo due to the trio of issues as above.
http://www.netcastdaily.com/broadcast/fsn2011-0708-1.asx
Barons link:
And Goldman’s questioning the unlimited Saudi production
In spite of Opec agreeing not to pump more the Saudi’s broke ranks in june, confirming they upped production.. it seems the US and European strategic stores may not be enough as Saudi Arabia are still under immense pressure to pump more.
http://www.livemint.com/2011/06/10164405/Saudi-offers-Asian-refiners-mo.html
The pressure for more oil continues to come from – Asia. Brent at nearly 116 usds p.b. signifies the sustained pressure. China continues to add to her stores.
http://www.reuters.com/article/2011/06/09/us-opec-asia-supply-idUSTRE7581U120110609
Rich
p.s. brent to nymex differential in a key indicator of where the demand is at present.
http://www.reuters.com/article/2011/07/08/markets-energy-crude-brent-idUSN1E7670S320110708
UK oil and natgas production declining significantlywhich helps to explain the recent UK U-turns on energy taxes and British Gas’s recent announcement.
http://peakoilupdate.blogspot.com/2011/07/huge-decline-in-uk-oil-and-gas.html
Rich
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