June 9, 2010

Post Reply
dan_s
Posts: 34471
Joined: Fri Apr 23, 2010 8:22 am

June 9, 2010

Post by dan_s »

Check out my updated forecast for Mitcham Industries (MIND) that will be posted to the Sweet 16 tab Thursday morning. Q1 results are very encouraging.

I spend several hour in meetings today discussing the Bakken Shale and Eagleford Shales. These two plays plus the northern third of the Barnett Shale will eventually become some of the largest oil fields ever discovered in North America. You all need to listen to the EOG presentation from June 4 that is available on their website.

Oil now has strong support at $70/bbl. Look for it to drift higher as we move through the summer. Nat gas also appears to be heading higher as demand is increasing for the fuel for power generation with heat moving into the southeastern quarter of the country where there are lots of NG fired power plants.

Dan

NEW YORK (AP) -- Oil prices rose to near $75 a barrel Wednesday, after Fed Chairman Ben Bernanke said European debt problems should not have a major impact on the U.S. economy.

Benchmark crude for July delivery rose $2.64 to $74.63 a barrel at midday on the New York Mercantile Exchange. The contract settled at $73.83 in after hours trading.

Bernanke said Europe's debt problems should have on a "modest" drag on the U.S. economy, if financial markets halt their slide.

"Some optimism has returned to the market in particular in the U.S. It appears that $70 is the bottom for oil and prices may creep back up to the high $70s as we go deeper into summer," said Victor Shum, an energy analyst at consultancy Purvin & Gertz.

Oil also got a boost from the weekly petroleum inventories report from the Energy Dept. Crude supplies fell by 1.8 million barrels. That was more than the 1.3 million barrel decline analysts predicted, according to Platts the energy arm of McGraw-Hill.

In other Nymex trading in July energy contracts, heating oil rose 5.16 cents to $2.0167 a gallon, and gasoline was up 5.31 cents to $2.0422 a gallon. Natural gas lost 7.8 cents at $4.730 per 1,000 cubic feet.

Brent crude rose $2.10 to $74.40 a barrel on the ICE futures exchange.
Dan Steffens
Energy Prospectus Group
bearcatbob

Re: June 9, 2010

Post by bearcatbob »

What is the feelings in Houston of the way BP is being treated/beat up by Team Obama?
Post Reply