{"id":1209,"date":"2017-05-30T09:32:56","date_gmt":"2017-05-30T15:32:56","guid":{"rendered":"http:\/\/gpswp.com\/apwealthmanagement\/?p=1209"},"modified":"2017-05-30T09:32:56","modified_gmt":"2017-05-30T15:32:56","slug":"current-state-energy-markets","status":"publish","type":"post","link":"https:\/\/gpswp.com\/apwealthmanagement\/current-state-energy-markets\/","title":{"rendered":"Current State of the Energy Markets"},"content":{"rendered":"<div id=\"body-content\">\n<h3>Current State of the Energy Markets<\/h3>\n<p style=\"font-size:12px;color:#999;font-weight:normal\">May 22, 2017 | <a href=\"http:\/\/gdrive.gradientfinancialgroup.com\/includes\/gdrive\/gi-blog-print.php?id=1841\" target=\"_blank\">Print View<\/a><\/p>\n<p style=\"text-align:justify;margin:10px 10px 10px 5px\">It\u2019s been a fairly wild ride the last several years in the global energy markets. Oil prices crashed from over $100 per barrel to below $30 per barrel back in February of 2016, and have since stabilized in the $50 per barrel area today. See the chart below of WTI crude oil prices since the beginning of 2016:<\/p>\n<p><img style=\"max-width:600px\" src=\"http:\/\/community.gradientfinancialgroup.com\/index.php?attachments\/2017&amp;fs=1\"><\/p>\n<p>What\u2019s happened the last couple of years? Below is a quick summary of oil markets the last two years.\n<\/p>\n<ul>\n<li>U.S. shale oil production increased dramatically over the last five years.<\/li>\n<li>This, on top of increasing production in other global regions, led to an oversupply position in the global oil markets.<\/li>\n<li>As the world produced more oil than it consumed on a daily basis, prices collapsed.<\/li>\n<li>In reaction to precipitously falling prices, oil producers in the U.S. and globally curtailed production.<\/li>\n<li>OPEC (led by Saudi Arabia) and non-OPEC (led by Russia) countries instituted oil production cuts.<\/li>\n<li>Between curtailed U.S. production and the OPEC production cut the global supply\/demand equation improved.<\/li>\n<\/ul>\n<p>Looking at the charts below of global daily crude oil production and demand, we can see that things are fairly balanced right now after supply on the right-hand chart declined for several quarters:<\/p>\n<p><img style=\"max-width:600px\" src=\"http:\/\/community.gradientfinancialgroup.com\/index.php?attachments\/2018&amp;fs=1\"><\/p>\n<p>In fact, the U.S. Energy Information Administration (eia) forecasts that future oil market supply\/demand conditions will remain balanced into 2018. See the chart below highlighting past and forecasted world production (blue line) and demand (brown line) by the (eia) below:<\/p>\n<p><img style=\"max-width:600px\" src=\"http:\/\/community.gradientfinancialgroup.com\/index.php?attachments\/2019&amp;fs=1\"><\/p>\n<p>This balance should lead to more stable-to-rising oil prices going forward. Things to monitor going forward include:<\/p>\n<ul>\n<li>the increasing level of U.S. production now that prices are stable (the U.S. is now a major swing producer in the global oil markets due to shale oil production)<\/li>\n<li>the ability of OPEC and Russia to extend and honor their production cuts at the May 25th OPEC meeting<\/li>\n<li>global economic growth and its effect on oil demand<\/li>\n<\/ul>\n<p>Stable oil prices are generally a positive thing for the investment markets. We are forecasting WTI crude oil prices to finish close to $60 per barrel as we exit 2017. Oil prices at these levels will benefit:<\/p>\n<ul>\n<li>the US economy in the form of energy sector jobs and capital investment<\/li>\n<li>emerging market economies (many tend to be commodity based)<\/li>\n<li>energy company earnings (about 15% of the stock market) which benefits the overall market<\/li>\n<li>the high yield bond market and other energy related income producing securities<\/li>\n<\/ul>\n<p>Overall, oil prices that are too low slow down our economy, just as prices that are too high can choke off economic growth. Prices in the $50 to $75 per barrel trading range will benefit the investment markets in our opinion. Prices in this range should benefit Gradient\u2019s Energy Sector Focus portfolio as well as our more broad emerging market and energy sector holdings in the Gradient Tactical Rotation, Absolute Yield and Endowment portfolios.<\/p>\n<div style=\"text-align:right\"><img src=\"http:\/\/gdrive.gradientfinancialgroup.com\/images\/sig_Binger.png\"><\/div>\n<h3>Past Market Commentary<\/h3>\n<div class=\"previousUpdate\">\n<p><img src=\"https:\/\/gdrive.gradientfinancialgroup.com\/images\/icons\/filetype-article.png\"> <a href=\"http:\/\/www.gradientfinancialgroup.com\/gradient-investments\/market-reflections?id=1831\">The Re-emergence of the \u201cFANG\u201d stocks<\/a> May 11, 2017<\/p>\n<p><img src=\"https:\/\/gdrive.gradientfinancialgroup.com\/images\/icons\/filetype-article.png\"> <a href=\"http:\/\/www.gradientfinancialgroup.com\/gradient-investments\/market-reflections?id=1795\">How Alarming is the U.S. Federal Debt?<\/a> April 13, 2017<\/p>\n<p><img src=\"https:\/\/gdrive.gradientfinancialgroup.com\/images\/icons\/filetype-article.png\"> <a href=\"http:\/\/www.gradientfinancialgroup.com\/gradient-investments\/market-reflections?id=1763\">Post-Election Stock Market Update<\/a> March 20, 2017<\/p>\n<p><img src=\"https:\/\/gdrive.gradientfinancialgroup.com\/images\/icons\/filetype-article.png\"> <a href=\"http:\/\/www.gradientfinancialgroup.com\/gradient-investments\/market-reflections?id=1754\">Exchange Traded Funds (ETFs) Explained<\/a> March 13, 2017<\/p>\n<p><img src=\"https:\/\/gdrive.gradientfinancialgroup.com\/images\/icons\/filetype-article.png\"> <a href=\"http:\/\/www.gradientfinancialgroup.com\/gradient-investments\/market-reflections?id=1727\">The Case for Dividend Stock Investing<\/a> February 10, 2017<\/p>\n<p><img src=\"https:\/\/gdrive.gradientfinancialgroup.com\/images\/icons\/filetype-article.png\"> <a href=\"http:\/\/www.gradientfinancialgroup.com\/gradient-investments\/market-reflections?id=1716\">Precious Metals &#8211; For Your Consideration<\/a> January 23, 2017<\/p>\n<p><img src=\"https:\/\/gdrive.gradientfinancialgroup.com\/images\/icons\/filetype-article.png\"> <a href=\"http:\/\/www.gradientfinancialgroup.com\/gradient-investments\/market-reflections?id=1704\">Is It Finally Time For International Markets?<\/a> January 11, 2017<\/p>\n<p><img src=\"https:\/\/gdrive.gradientfinancialgroup.com\/images\/icons\/filetype-article.png\"> <a href=\"http:\/\/www.gradientfinancialgroup.com\/gradient-investments\/market-reflections?id=1669\">Investors Finally Rotating Out Of Bonds<\/a> December 20, 2016<\/p>\n<p><img src=\"https:\/\/gdrive.gradientfinancialgroup.com\/images\/icons\/filetype-article.png\"> <a href=\"http:\/\/www.gradientfinancialgroup.com\/gradient-investments\/market-reflections?id=1628\">Rising Interest Rates \u2013 What Do We Do?<\/a> November 17, 2016<\/p>\n<p><img src=\"https:\/\/gdrive.gradientfinancialgroup.com\/images\/icons\/filetype-article.png\"> <a href=\"http:\/\/www.gradientfinancialgroup.com\/gradient-investments\/market-reflections?id=1614\">Election Jitters<\/a> November 3, 2016<\/p>\n<\/div><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Current State of the Energy Markets May 22, 2017 | Print View It\u2019s been a fairly wild ride the last several years in the global energy markets. Oil prices crashed from over $100 per barrel to below $30 per barrel back in February of 2016, and have since stabilized in [&#8230;]<br \/><a class=\"read-more small\" href=\"https:\/\/gpswp.com\/apwealthmanagement\/current-state-energy-markets\/\">Continue Reading <i class=\"fa fa-long-arrow-right\"><\/i><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[2],"tags":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v19.7.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Current State of the Energy Markets - Asset Protection Wealth Management<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/gpswp.com\/apwealthmanagement\/current-state-energy-markets\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Current State of the Energy Markets - Asset Protection Wealth Management\" \/>\n<meta property=\"og:description\" content=\"Current State of the Energy Markets May 22, 2017 | Print View It\u2019s been a fairly wild ride the last several years in the global energy markets. Oil prices crashed from over $100 per barrel to below $30 per barrel back in February of 2016, and have since stabilized in [...]Continue Reading\" \/>\n<meta property=\"og:url\" content=\"https:\/\/gpswp.com\/apwealthmanagement\/current-state-energy-markets\/\" \/>\n<meta property=\"og:site_name\" content=\"Asset Protection Wealth Management\" \/>\n<meta property=\"article:published_time\" content=\"2017-05-30T15:32:56+00:00\" \/>\n<meta property=\"og:image\" content=\"http:\/\/community.gradientfinancialgroup.com\/index.php?attachments\/2017&amp;fs=1\" \/>\n<meta name=\"author\" content=\"gps\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"gps\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/gpswp.com\/apwealthmanagement\/current-state-energy-markets\/\",\"url\":\"https:\/\/gpswp.com\/apwealthmanagement\/current-state-energy-markets\/\",\"name\":\"Current State of the Energy Markets - Asset Protection Wealth Management\",\"isPartOf\":{\"@id\":\"https:\/\/gpswp.com\/apwealthmanagement\/#website\"},\"datePublished\":\"2017-05-30T15:32:56+00:00\",\"dateModified\":\"2017-05-30T15:32:56+00:00\",\"author\":{\"@id\":\"https:\/\/gpswp.com\/apwealthmanagement\/#\/schema\/person\/d197cb47d12472272461c3be2b753878\"},\"breadcrumb\":{\"@id\":\"https:\/\/gpswp.com\/apwealthmanagement\/current-state-energy-markets\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/gpswp.com\/apwealthmanagement\/current-state-energy-markets\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/gpswp.com\/apwealthmanagement\/current-state-energy-markets\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/gpswp.com\/apwealthmanagement\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Current State of the Energy Markets\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/gpswp.com\/apwealthmanagement\/#website\",\"url\":\"https:\/\/gpswp.com\/apwealthmanagement\/\",\"name\":\"Asset Protection Wealth Management\",\"description\":\"\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/gpswp.com\/apwealthmanagement\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/gpswp.com\/apwealthmanagement\/#\/schema\/person\/d197cb47d12472272461c3be2b753878\",\"name\":\"gps\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/gpswp.com\/apwealthmanagement\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/64ab0a629e8c8d37ece94eefe3021afa?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/64ab0a629e8c8d37ece94eefe3021afa?s=96&d=mm&r=g\",\"caption\":\"gps\"},\"url\":\"https:\/\/gpswp.com\/apwealthmanagement\/author\/admin\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Current State of the Energy Markets - Asset Protection Wealth Management","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/gpswp.com\/apwealthmanagement\/current-state-energy-markets\/","og_locale":"en_US","og_type":"article","og_title":"Current State of the Energy Markets - Asset Protection Wealth Management","og_description":"Current State of the Energy Markets May 22, 2017 | Print View It\u2019s been a fairly wild ride the last several years in the global energy markets. Oil prices crashed from over $100 per barrel to below $30 per barrel back in February of 2016, and have since stabilized in [...]Continue Reading","og_url":"https:\/\/gpswp.com\/apwealthmanagement\/current-state-energy-markets\/","og_site_name":"Asset Protection Wealth Management","article_published_time":"2017-05-30T15:32:56+00:00","og_image":[{"url":"http:\/\/community.gradientfinancialgroup.com\/index.php?attachments\/2017&amp;fs=1"}],"author":"gps","twitter_misc":{"Written by":"gps","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/gpswp.com\/apwealthmanagement\/current-state-energy-markets\/","url":"https:\/\/gpswp.com\/apwealthmanagement\/current-state-energy-markets\/","name":"Current State of the Energy Markets - Asset Protection Wealth Management","isPartOf":{"@id":"https:\/\/gpswp.com\/apwealthmanagement\/#website"},"datePublished":"2017-05-30T15:32:56+00:00","dateModified":"2017-05-30T15:32:56+00:00","author":{"@id":"https:\/\/gpswp.com\/apwealthmanagement\/#\/schema\/person\/d197cb47d12472272461c3be2b753878"},"breadcrumb":{"@id":"https:\/\/gpswp.com\/apwealthmanagement\/current-state-energy-markets\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/gpswp.com\/apwealthmanagement\/current-state-energy-markets\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/gpswp.com\/apwealthmanagement\/current-state-energy-markets\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/gpswp.com\/apwealthmanagement\/"},{"@type":"ListItem","position":2,"name":"Current State of the Energy Markets"}]},{"@type":"WebSite","@id":"https:\/\/gpswp.com\/apwealthmanagement\/#website","url":"https:\/\/gpswp.com\/apwealthmanagement\/","name":"Asset Protection Wealth Management","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/gpswp.com\/apwealthmanagement\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/gpswp.com\/apwealthmanagement\/#\/schema\/person\/d197cb47d12472272461c3be2b753878","name":"gps","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/gpswp.com\/apwealthmanagement\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/64ab0a629e8c8d37ece94eefe3021afa?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/64ab0a629e8c8d37ece94eefe3021afa?s=96&d=mm&r=g","caption":"gps"},"url":"https:\/\/gpswp.com\/apwealthmanagement\/author\/admin\/"}]}},"_links":{"self":[{"href":"https:\/\/gpswp.com\/apwealthmanagement\/wp-json\/wp\/v2\/posts\/1209"}],"collection":[{"href":"https:\/\/gpswp.com\/apwealthmanagement\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/gpswp.com\/apwealthmanagement\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/gpswp.com\/apwealthmanagement\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/gpswp.com\/apwealthmanagement\/wp-json\/wp\/v2\/comments?post=1209"}],"version-history":[{"count":1,"href":"https:\/\/gpswp.com\/apwealthmanagement\/wp-json\/wp\/v2\/posts\/1209\/revisions"}],"predecessor-version":[{"id":1210,"href":"https:\/\/gpswp.com\/apwealthmanagement\/wp-json\/wp\/v2\/posts\/1209\/revisions\/1210"}],"wp:attachment":[{"href":"https:\/\/gpswp.com\/apwealthmanagement\/wp-json\/wp\/v2\/media?parent=1209"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/gpswp.com\/apwealthmanagement\/wp-json\/wp\/v2\/categories?post=1209"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/gpswp.com\/apwealthmanagement\/wp-json\/wp\/v2\/tags?post=1209"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}