Gas over Oil II

Oil Falls for Fourth Day in New York; Brent Fluctuates at Bloomberg.  Yesterday was Natural Gas’ Biggest Single-Day Slump Since August at Barron’s.

Dennis Gartman Makes the Bear Case for Crude on CNBC.

“U.S. fossil fuel production will reach all-time high this year; America’s energy self-sufficiency will be highest since 1990” from Mark Perry:

Remember the twin deficits?  Since the financial crisis the federal budget deficit has taken center stage over the trade deficit.  Shale oil can take care of of most of the the trade deficit, while shale gas could indirectly finish the job.  Econbrowser

Oil Sector Update :  Goodrich / Kodiak Oil / Magnum Hunter / Northern Oil / PDC Energy from AMP 2012.  Traders:  FST long setup.

For John, regarding propane:

  • Propane inventories end third quarter at record level; supplies rise despite low prices EIA
  • “In a note to investors, the bank (Merrill Lynch) said the US propane market would rebalance in 2013 from its current excess of supply as greater export opportunities opened up and winter heating demand recovered.”  Platts
  • Propane Prices Are Set To Rebound Sharply In 2013 by Nawar Alsaadi

Housekeeping:  Is anyone else noting natural gas looks better than oil (gasp!).  NG is so hated I feel like an idiot for even suggesting it again.  Tomorrow morning’s post looks to be more natural gas focused.

Off topic:  While Ford appears to be beating GM operationally, here is a bull case for GM from Sum Zero.

Editorial Cartoon: Electric Car Market from Henry Payne:

2 thoughts on “Gas over Oil II

  1. Mr James Hamilton, has a bad habit of being extremely convoluted…

    Oil import are the largest portion of America’s imports and at one time was 40% of all imports…

    I have has said for several years, that you rid import of oil so to will the trade deficit…

    It will be a boom for the dollar…

  2. In the middle of the last decade a fundamental case could be made for the dollar index getting cut in half. No more!

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