Commodities Today: Bakken Continues To Impress And A Solar Deal

by: Matthew Smith

It appears that Syria will remain in the news as an international task force is assembled to deal with accounting for the country's chemical weapons arsenal and exactly how the situation will be dealt with. By delaying any U.S. military action with this proposal it appears that Russia has saved its ally because the longer an attack is delayed the staler America's desire to attack will become.

This is good news for the market as a whole, and could even be good for the oil market as there are bound to be some disagreements over implementing the plan which will allow for some trading to take place. Fundamentals shall once again move to the forefront of why traders buy stocks and that should see quality names rise.

If one has to be buyers of metals these days, we would refrain from buying the SPDR Gold Shares (NYSEARCA:GLD) and instead look at palladium for possible trades. We find the trading opportunities there to be intriguing.

Chart of the Day:

We cannot help but continue to watch Palladium and its desire to trade near $700/ounce. Whether it rises above or falls below, the metal seems to gravitate towards that psychologically important level and has done so for quite some time now. It is really quite interesting.

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Source: Kitco

Commodity prices this morning are as follows:

  • Gold: $1362.90/ounce, down by $1.10/ounce
  • Silver: $23.125/ounce, up by $0.109/ounce
  • Oil: $107.72/barrel, up by $0.33/barrel
  • RBOB Gas: $2.7484/gallon, up by $0.0127/gallon
  • Natural Gas: $3.567/MMbtu, down by $0.017/MMbtu
  • Copper: $3.2785/pound, up by $0.016/pound
  • Platinum: $1477.60/ounce, up by $3.50/ounce

Oil & Natural Gas

Investors saw another Bakken name move strongly higher yesterday as Triangle Petroleum (NYSEMKT:TPLM) rose over 17% to close at $8.88/share o volume exceeding 5 million. The move was in response to solid quarterly numbers and what we would call a bullish conference call. As we have alluded to in the past few days, the increased activity in the Bakken is causing investors to reevaluate the valuation assigned to these companies and it seems that the company's management agrees. This company is a potential target with their moderate market cap and solid production numbers. One has to be bullish of all things Bakken right now. Attached via this link is the transcript to the company's quarterly conference call.

All things Bakken seem to be moving higher these days and Triangle Petroleum is no exception. Look for more good news in the quarters ahead from this name.

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Source: Yahoo Finance

It seems that some of our optimism in Gulfport Energy (NASDAQ:GPOR) may have been a bit over done as the company announced yesterday (see AP article here and the company's press release here) that they were lowering their production guidance again due to infrastructure issues. Previously the company had indicated that they had these issues worked out with their midstream partner, but it appears that the right-of-way issues in Ohio have once again stalled progress. As disappointing as this is, the rally after the initial hit yesterday was certainly bullish and highlights the interest in the name. So long as others are willing to immediately buy on dips we will be willing to hold through them.

We watched yesterday as Apache (NYSE:APA) was featured on CNBC's 'The Closing Bell' as Maria Bartiromo interviewed the company's CEO. We were hoping to get some hints as to what the company's plans were moving forward but it seems to U.S. that little has changed and they will continue to look to offload noncore assets and focus more on domestic production. It is hard to get excited about that, and this is probably why we have seen so many downgrades recently (obviously the analysts were not getting any new insights and they figure that there is little newsflow left from the company).


Elon Musk's SolarCity (NASDAQ:SCTY) signed a multimillion dollar agreement to supply solar electricity to businesses with Direct Energy. The news sent shares up $6.69 (22.38%) to close at 36.58/share with volume coming in roughly three times high than average. The deal calls for the two to partner and fund $124 million in projects, with Direct Energy agreeing to fund as much as $50 million of the total. Direct Energy will get access to solar power with little to no upfront cost for its customers by signing on and SolarCity gets access to capital and a distribution partner. All in all it is not a bad deal, and that is coming from someone who dislikes solar.

Disclosure: I am long GPOR. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.