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Oil markets disappointed as OPEC does the expected

Oil markets disappointed as OPEC does the expected

OPEC and allied non-OPEC producers have agreed to extend oil production cuts at current levels for nine more months through March 2018. Oil markets, which had been expecting exactly this result for days now, fell on disappointment that OPEC didn’t go further and...
Saudis reverse 1/3 of production cuts; oil market trembles

Saudis reverse 1/3 of production cuts; oil market trembles

Saudi Arabia has told OPEC that it will not play sucker to countries that won’t meet OPEC’s targets for production cuts. Russia, Iraq, and the United Arab Emirates have not yet delivered the production cuts they agreed to. Saudi Arabia has said that it...
Exxon Mobil (XOM)

Exxon Mobil (XOM)

Normally I look for dividend yields above 4% or 5% for my dividend income portfolio. On this measure, Exxon Mobil (XOM) with its 3.35% yield isn’t exactly an astounding opportunity. But something out of a recent report from Goldman Sachs caught my eye: Exxon Mobile...

5 picks for energy, the once and future sector

On January 28, I argued that the U.S. economy is still in the early recovery stage of the business cycle, and that you should overweight your portfolio toward the stocks that do best at this point in the cycle: “Sectors that do best are usually industrials, near the...

China disrupts the oil and gas industry–again

You wouldn’t think that anybody, especially an anybody as savvy as ExxonMobil (XOM), could overlook China. But that may be exactly what ExxonMobil did in formulating its plan to pin the company’s growth on natural gas—and in particular on liquefied natural gas (LNG)....

Update Transocean (RIG)

The best you can say about Transocean (RIG) is that it has a tin ear for public opinion. The company’s public response to the Deepwater Horizon disaster in April has been to say 1) It wasn’t our fault and 2) We’re not on the hook for very much money. Even if true, and...

Sell Statoil (STO)

I’m selling Statoil (STO) on today’s bounce because the euro debt crisis has changed the medium-term fundamentals for this Norwegian oil company. As I wrote in my 12:30 May 21 post...

Update Encana (ECA)

EnCana (ECA) formalized its split into two companies when it began trading as EnCana (ECA) and Cenovus Energy (CVE) on the New York Stock Exchange on December 9. Shareholders in EnCana received one share of the new EnCana and one share of Cenovus for each share of the...