Shining a Light on an Out-of-Favor Oil Stock

Technical analyst Clive Maund charts an oil and gas explorer that he believes is under the radar of most investors.

Torchlight Energy Resources Inc. (TRCH:NASDAQ) has fallen out of favor with investors and is largely off the radar, which is understandable considering that it has done nothing for its investors for two years. However, the company still has potential and it is thought that there is an increasing chance that there will be some positive news soon, with the current lack of interest increasing upside potential.

Its 8-year chart looks much the same as when we last looked at it back in June, so the preparation of this chart was largely a copy and paste job. There is one very noteworthy difference, however, which is that the stock is considerably cheaper. When we looked at it back in the summer it was priced at $1.66, and at that time it was written that it was worth accumulating on any near-term weakness, and that we have certainly seen as it is now priced at $1.12. Observe on the chart how it continues to look like it is basing, within a large bucket like pattern, and the positive volume pattern and volume indicators bode well for an eventual breakout from this pattern, which after all this time could now be drawing closer…

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Oil prices rise on extended market optimism

Crude oil prices continued to show modest gains in early Monday trading, even after sentiment and data show a potential for more U.S. oil on the market.

Crude oil prices are gaining some of the value lost in the brief slump that followed a late November decision by the Organization of Petroleum Exporting Countries to extend a production cut agreement until the end of 2018. Anticipation ahead of the agreement had inflated prices somewhat and now traders are shifting their attention back to market fundamentals.

Oil prices gained ground in the Friday session on signs of a surge in demand from China and generally positive figures for U.S. labor. The rally was extended even after drilling services company Baker Hughes reported an increase in exploration and production in North America, a sign of an eventual increase in output…

 

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1 Oil Stock to Buy as OPEC and Russia Stand “Shoulder to Shoulder”

OPEC and Russia have done it again: They have extended production cuts until the end of 2018. This is being done to drain the market of its excess inventories following their (arguably) failed attempt to kill the U.S. shale industry. This is crucial for oil stocks like Diamondback Energy (NASDAQ: FANG) — one of the best in the shale business that has only gotten more efficient at producing black gold.

The move goes to show just how desperately the players need higher oil prices. To that end, the Saudi Arabian energy minister didn’t hold back regarding his country’s newfound relationship with Russia: “We are united, shoulder to shoulder.”

The production cuts, first announced a year ago, have had a marked impact. Global inventories have fallen by around 50% from their peak, and oil prices have risen to multiyear highs…

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Major North Sea pipeline system may be down for weeks

It’s too soon to say how quickly repairs to a major oil pipeline system in the North Sea are made, but it may be a matter of weeks, the operator said.

Brent crude oil prices went up 2 percent during Monday’s session after pipeline operator Ineos shut down the Forties crude network in the North Sea after discovering a “hairline crack” on a pipe near Aberdeen, Scotland, last week. The system carries about 40 percent of the oil produced in the British waters of the North Sea, or about 450,000 barrels of oil per day.

No oil was seen spilled in the surrounding environment, though some area residents were relocated elsewhere as a precaution. Ineos said that, after discovering the fracture, it reduced operating pressure to try to contain the incident, but the crack spread and the entire system was shut down…

 

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Oil prices settle down, but still higher on North Sea outage

The perfect storm of a healthy appetite from China, a decline in global inventories and a major North Sea pipeline outage sent oil prices higher on Tuesday.

After a relatively quiet start to the day, Brent crude oil prices shot up 2 percent during Monday’s session after pipeline operator Ineos shut down the Forties crude network in the North Sea after discovering a “hairline crack” on a pipe near Aberdeen, Scotland, last week.

The system carries about 40 percent of the oil produced in the British waters of the North Sea, or about 450,000 barrels of oil per day. London oil broker PVM said the outage, which Ineos said could take weeks to resolve, “is one of the most significant unplanned crude oil shortages we have seen this year”…

 

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IEA says monitoring Forties crude pipeline outage, sees no need to act yet

The International Energy Agency said it is monitoring the closure of the Forties crude pipeline that has sent oil prices to 2-1/2 year highs, but said it saw no immediate need to act as the market remains well supplied.

The pipeline, which can handle around 450,000 barrels per day of Forties crude oil and carries around a third of UK gas produced offshore, closed down on Monday and may remain shut for a number of weeks, after its operator Ineos detected a minor leak last week. “We are monitoring the situation closely, and stand ready to act, but at the moment we see no need as the market is amply supplied from other sources and stocks are well above the five-year average,” the Paris-based IEA said in a statement on Tuesday.

The IEA advises Western governments on energy policy…

 

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Former Gov. Blanco thankful for prayers

Former Gov. Kathleen Blanco’s family said Monday the prayers of Louisianans are lifting her spirits and giving her strength.

USA Today Network and other media outlets published stories Sunday reporting the former governor is suffering from uncurable cancer. Blanco also penned a guest column that ran in most state newspapers.

Following is a statement from the family..

 

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U.S. Drillers Continue to Gather to Crude Shale Plays

In its weekly release, Houston-based oilfield services player Baker Hughes, a GE company BHGE, reported an increase in total rig counts in the United States.

Baker Hughes’ data, issued since 1944 at the end of every week, helps energy service providers gauge the overall business environment of the oil and gas industry.

Change in Baker Hughes’ rotary rig count dents demand for energy services like drilling, completion and production provided by the likes of Halliburton Company HAL, Schlumberger Ltd. SLB, Weatherford International plc WFT, Diamond Offshore Drilling, Inc. DO and Transocean Ltd. RIG…

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Trump letting oceans turn into ‘toxic waste dumps,’ conservationist group claims

The federal government failed vulnerable whale, turtle and fish species when it allowed oil companies to release their waste into the Gulf of Mexico earlier this year, a conservationist group argues.

The Center for Biological Diversity has put the U.S. Environmental Protection Agency on notice. Last week, the center filed a 60-day letter of intent to sue, a required precursor to a lawsuit in which the nonprofit conservation group is expected to argue the government is not complying with the Endangered Species Act.

The EPA in September finalized a Clean Water Act permit, which allows oil and gas rigs off the coast of Texas, Louisiana and Mississippi to flush waste liquids into the Gulf. The Center for Biological Diversity is worried about pollutants from sources like produced water, which is a byproduct of hydraulic fracturing that contains chemicals like arsenic and lead…

 

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Trump Is Said to Open Door for Oil Drilling Off East Coast

The Trump administration is preparing to unveil as soon as this week an expansive offshore oil plan that would open the door to selling new drilling rights in Atlantic waters, according to people familiar with the plan.

President Donald Trump ordered his Interior Department to write the new blueprint with the aim of auctioning oil and gas drilling rights off the U.S. East Coast — territory that his predecessor, former President Barack Obama, had ruled out. The Interior Department’s coming draft proposal, an initial milestone in replacing the Obama-era sale plan, dovetails with the oil industry’s push for new places to drill, said the people, who asked not to be identified before a formal announcement.

Trump’s proposal would span the years 2019 to 2024, replacing the Obama plan, which runs through 2022…

 

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