Actionable Intelligence Alert

Lots of energy news this week. Power prices in Europe are soaring to record highs.    How long can this continue until there is a political backlash?   Japan vows to turn on more nuclear reactors for energy security.

Oil prices have been dropping over the past couple of months. I explore why this is and where oil prices might be going.   Although oil prices are dropping natural gas and coal prices are at historical highs. Why it might be a while before they drop.

Exxon and Chevron reported record quarterly results this week as record refining margins along with high oil prices resulted in excellent results. European oil majors also reported excellent results with several companies announcing additional returns of capital to shareholders via share buybacks.

Schlumberger, the world's largest oilfield service provider, just reported a tremendous quarter, guiding their business substantially higher for the next few quarters.   This report along with Halliburton's bullish report earlier this week indicates that we finally have an upswing in the oilfield services sector. A boom that I believe will outshine previous booms.

CPI came in at a decades high of 9.1%. If calculated the way it was in 1980 it is actually 17%!  I also discuss how far oil could fall in the current recession.

In the past, Buffett has said he does not like cyclical or commodity-type businesses.    Yet he has been buying Oxy and Chevron stock. What gives. I discuss in this week's video.

The bond market seems to be shifting from concern over inflation to economic weakness.   The bond market forecasts a rate cut in the first half of 2023.   The energy crisis continues as the "leadership" in the EU and the US just can't stop digging their hole deeper.

Rates are being raised by the FED. However, the market has raised rates well in advance of FED. Consequently, the FED is way behind the curve.   How far can rates go up before an over-indebted economy full of malinvestment begins to break?  How will this affect energy prices? Will liquidity and sentiment overwhelm the positive long-term energy fundamentals in the short term?

Consumer confidence is at an all-time low.  Credit card debt is at an all-time high.  Energy costs continue to strangle the US consumer and economy.  I give a free stock pick that could soar during a recession.

The energy crisis continues. At some point, the energy price will rise to a sufficient price to choke off demand.   The question is what is that price? $150, $200, or even $300 per barrel.  In the meantime, many of the stocks in the Actionable Intelligence Alert Newsletter are printing tons of money.