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December 18, 2006

Energy Insights
by Meridian

Score 1 for Putin and 0 for Royal Dutch Shell. Russian hegemony this week took another step forward when Shell conceded 30% of its stake in the giant Sakhalin Island gas play in eastern Russia. Two smaller Japanese players each with a 10% interest threw in the towel completely. At Energy Central we are watching the bold moves of former KGB leader Vladimir Putin as he moves Russia forward and we are keeping our readers up to date. What we see is Russia making its footprint on the world as an emerging and powerful energy player. This can surely mean only one thing and that is higher energy prices going forward.

The much awaited OPEC decision really was no decision at all. At Energy Central we penned the eulogy for OPEC several weeks ago. With only 40% of global production coming out of OPEC, there is probably little this aged old group can do anymore. This week they waved their arms, stomped their feet and threatened to cut production in February. Yeah, we're listening. Have a good Holiday Season and we'll hear from you again soon.

Regional conflagration. An impressive sounding phrase. But what does it mean? This week for my readers I take a deeper look at this strange expression and offer comments as to what it means and what it portends for the world of energy.

I'll see your move and I will raise you one. So said the EU Energy Commissioner this week. Russian hegemonic control over Nat Gas may not be a hop, skip and a jump away like Mr. Putin thinks it is. If the EU has its way, a pipeline system from Kazakhstan through Turkey and into eastern Europe will neutralize Mr. Putin's plans. Game on. Russian chess master Gary Kasparov would be proud. This week for my readers I offer up the details.

Titanium and Zircon. Elements 22 and 40 respectively on the Periodic Table of Elements. Turns out these metals have a distinct connection to the energy industry. This week I elaborate on this connection and introduce readers to a mining company that is set up to do business right in the heart of the Canadian oil sands.

1.3 billion barrels over 30 years. That was all it took to get Chinese energy giant Sinopec to set up shop in the Canadian oil sands. Although still a bit early stage, this may be a stock for your children's account. That Harvard education may be closer than you think. This week I unveil this unique opportunity for my regular readers.

Crude Oil - Intermediate Term

This week Crude held its positive momentum in choppy 2 sided trade. But, if you look closely at this chart you will see a very unique chart pattern. This week for my regular readers I take a detailed look at this chart and explain what I see. It all looks positive to me and in fact Crude remains above its 18 day moving average and the RSI remains above "50". The next technical swing resistance point visible on the chart is $65.

It is amazing how technical chart action can foreshadow price moves. Several weeks ago the TV channels were all abuzz with analysts forecasting doom and gloom. At Energy Central, we took a look at the charts and noted some positive divergence. We knew that higher prices were coming. You see, the charts tell the story. If more people would just study the charts, the world would be a different place. So, if you continue to glean your information from CNN or CNBC, give some thought to trying something new in 2007. Visit www.themarkettraders.com and see what we have to offer.

Natural Gas - Intermediate Term

Nat Gas seems to be holding support at the $7.40 level. I am a bit concerned that we did not see a bigger reaction to the inventory data released this week. Momentum is technically negative but I am seeing some signs of positive divergence which bodes well for these price levels to hold.

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This Week in Technically Speaking

This week I take a technical look at Encana after their announcement of a capital spending cutback for 2007. I also look at PetroCanada which rocked Canadian markets on Friday. Lastly, I update readers on one of my favorite trading stocks and its South American oil production efforts which continue to amaze.

And that's all for this week. Take full advantage of all that is happening in the world of energy. There is money to be made in the energy markets. Point your browser to www.themarkettraders.com and have a good look around the site. You'll be glad you did.

www.themarkettraders.com

Copyright © 2006-2007 Meridian

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