16 Nov

Mark Fisher: Oil’s Fall Is Over

WRITTEN BY Rabindra Samanta

Oil’s fall is over

In an interview with CNBC on November 14, Mark Fisher, a famous energy trader, said that the “worst is over” for crude oil. On November 15, US crude oil prices were 25.8% below their four-year high closing of $76.41 per barrel on October 3.

Mark Fisher: Oil’s Fall Is Over

Fisher also pointed out that the sharp fall in oil prices might have been triggered by money rotating from oil to the natural gas market apart from more oversupply concerns.

Go long in oil?

Since the news about OPEC and non-OPEC oil producers’ plan for a production cut up to 1.4 MMbpd (million barrels per day) in 2019 on November 14, US crude oil futures have ended higher. In the Oil Market Report on November 14, the International Energy Agency expects global oil demand growth to rise by 1.3 MMbpd and 1.4 MMbpd in 2018 and 2019, respectively. A production cut of that magnitude might boost oil prices.

The risk is from the US oil industry. Oil production hit a record level of 11.7 MMbpd in the week ending November 9. The oil rig count has also been rising in recent weeks.

US crude oil prices

On November 15, US crude oil January futures rose 0.4% and settled at $56.68 per barrel. In the trailing week, US crude oil prices fell 6.9%. The Energy Select Sector SPDR ETF (XLE) rose 1.5% on November 15. The S&P 500 Index (SPY) and the Dow Jones Industrial Average Index (DIA) rose 1.1% and 0.8%, respectively, on November 15. In Part 3 of this series, we’ll analyze US crude oil’s relationship with these equity indexes. Integrated energy stocks like ExxonMobil (XOM) and Chevron (CVX) are also sensitive to oil prices.

Latest articles

25 Jun

Gold Breaches $1,400: What’s the Next Stop?

WRITTEN BY Anuradha Garg

Gold is now trading close to a six-year high following the Fed’s dovish pivot at its June policy meeting. After being range-bound for the last five years, gold has finally broken out and its outlook is bullish.

Shares of the J.M. Smucker Company (SJM) are up 29.8% year-to-date as of June 24 and have outperformed the broader markets. The company's acquisition of Ainsworth Pet Nutrition and its focus on high-growth categories via divestitures have supported its stock so far this year.

On June 25, General Motors (GM), America’s largest auto company, announced its plan to invest $20 million into its Arlington Assembly plant in Texas, according to Reuters. With the new investment, the company aims to upgrade its equipment before launching its full-size SUVs.

Shares of high-growth technology company ServiceNow (NOW) have gained close to 16.0% since April 2019. It's gained over 60.0% since the start of 2019. It also had an encouraging run in 2018, when it gained 32.0% in market value.

25 Jun

Ford to Announce Q2 US Sales on July 3: What to Expect

WRITTEN BY Jitendra Parashar

Earlier today, Ford (F) said that it would announce its second-quarter US sales data on July 3. In the first quarter, the company reported a 1.6% YoY decline in its US sales to 590,249 vehicle units. During the first quarter, Ford’s truck sales rose by 4.1%, and its SUV sales went up by 5.0% on a YoY basis.

On June 25, Credit Suisse initiated coverage on Chipotle Mexican Grill with an “outperform” rating and a target price of $870—a return potential of 20.1% from its stock price of $724.13 on June 24.