The Dean’s Oil and Gas Outlook
November 3rd, 2009 at 11:49 am Posted by The Dean
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The Dean believes the economy is strengthening and an increase in consumer demand is expected in the next two months, fueled by anticipated fourth quarter spending and reports of improvements in the overall global marketplace.
The Organization of Petroleum Exporting Countries (OPEC) raised crude-oil production in October to the highest levels seen since December 2008. Bloomberg reports that OPEC produced 26.31 million barrels a day, which was 1.465 million barrels, or 6%, above target.
Rick Mueller, Director of Oil Markets at Energy Security Analysts, Inc. suggests oil producers are focusing on prices near $80 and a stronger economic picture.
Bloomberg reports that oil has more than doubled from the four-year low of $32.40 of last year, with oil seeing increases since August. To add to that, Morgan Stanley (NYSE: MS) suggests that oil will reach $105 a barrel by 2012—that’s projected growth of 35% in the next two years.
Another report tells us that the average price consumers in the United States paid for a gallon of gasoline hit a high yesterday. The national price of gasoline is up to $2.69 a gallon—up 10% since this time last year.
Doug MacIntyre, senior analyst at the Energy Information Association (EIA) suggests that every $1 increase in a barrel of crude oil adds 2.4 cents to the price of a gallon of gasoline. This could mean gas prices moving up another 24 cents due to recent boosts in oil prices—a possible 20% increase since last year.
And as far as natural gas is concerned, The Wall Street Journal reports that natural gas could be the biggest energy innovation of the decade and production has increased 400% since 1990, now making up 40% of U.S. production.
These are all reasons why The Dean’s excited to bring the CollegeStock Community his newest oil and gas pick next week. The last oil and gas pick The Dean taught the CollegeStock Community about was $CGCA, which posted a potential gain of 288% for The Dean’s Honors Class.
The Dean wants to remind the CollegeStock Community that ONLY The Dean’s Honors Class will be learning about this pick this weekend.
