Entering text into the input field will update the search result below

Oil Update - October 2021

Nov. 01, 2021 11:29 AM ETDBE, RJN, JJE, JJETF, USO, DBO, USL, BNO, OIL, OILK, USOI, OLOXF, OILX5 Comments
Kevin Stecyk profile picture
Kevin Stecyk
5.43K Followers

Summary

  • Oil prices have, obviously, continued to strengthen. Backwardation is also strong, suggesting that prices are likely to remain firm.
  • Political pressure is mounting for OPEC+ to provide more oil to the markets, and OPEC+ is meeting in a few days.
  • Most pundits expect that OPEC+ will not bow to political pressure and will instead proceed with its planned 400 thousand barrel per day increase.

Prairie Oil Pump Jacks Canada USA

mysticenergy/E+ via Getty Images

Even though I increased my range by $5 per barrel last month, I underestimated the strength of oil prices. So, this month, I am increasing my range by $7.50 per barrel to range between $77.50 and $87.50 per barrel for West Texas Intermediate oil.

This article was written by

Kevin Stecyk profile picture
5.43K Followers
Kevin H. Stecyk has a mechanical engineering degree from the University of Alberta, an MBA from Queen's University in Kingston, Ontario, and a CFA designation. He spent the earlier part of his career working for Syncrude Canada Limited, an oil sands company in Fort McMurray, Alberta. After Syncrude, he worked for Suncor Energy Inc. in its conventional natural gas division. For the past several years, Kevin has been an independent consultant. Kevin's financial and business articles are not focused on any one area, but rather whatever industry or company currently interests him. Visit his site: Specious Argument (http://www.speciousargument.com/blog/)

Recommended For You

Comments (5)

D
Fear that $100 expectations overly exuberant and dim my Christmas.
pdtor profile picture
Lets go Branden

The only winners of green policy are Saudi Arabia, and Russia.

Please sell us your oil at exorbitant prices
C
@pdtor I'm invested in energy on both sides of the "debate" -- long renewables, pipelines, and oil producers. I've profited a great deal off of it, and expect that continue. Renewables will continue to get more and more projects to complete, and oil and gas will continue to be under-invested in, causing the price to stay high.

Invest according to the way things are, not with a political or social agenda or how you wish they were. I'll never understand people complaining about high energy prices on an investing website, they're the easiest things in the world to hedge against and/or profit from.

And don't look now, but I'm pretty sure that US oil and gas producers are doing at least as well as any other global producers profit-wise. I'm invested in Canadian names as I prefer their business models over shale, but whatever. High oil prices benefit all of them, and they can benefit you too if you are invested properly.
pdtor profile picture
@Chalmus0

You missed my sarcasm. I am long XOM,CVE,KMI, ENB.
As a Canadian ,I agree with you. So why did Biden shut down pipelines, oil will get to USA by hook or by crook (rail) Been in energy for about 2 years

Waiting for CVE to pull back a bit so I can double down. Waiting patiently foe ENB to appreciate, but love the dividends ENB and XOM

Happy investing, and stay warm this winter
hboy43 profile picture
@Chalmus0 Yes my oil and gas "hedges" are up a few million $ against the few hundred $ increase in my fuel bill LOL.
Disagree with this article? Submit your own. To report a factual error in this article, . Your feedback matters to us!

Related Stocks

SymbolLast Price% Chg
DBE--
Invesco DB Energy Fund ETF
RJN--
ELEMENTS Linked to the Rogers International Commodity Index - Energy Total Return
JJE--
iPath® Series B Bloomberg Energy Subindex Total Return ETN
JJETF--
iPath® Bloomberg Energy Subindex Total Return(SM) ETN
USO--
United States Oil Fund, LP ETF

Related Analysis

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.