Weaker dollar helps oil prices find $46
West Texas Intermediate prices gained 2.2%, or $1, Tuesday after loses Monday, rising to $46.17 per barrel on the New York Mercantile Exchange. The recovery was boosted by a weaker dollar, making oil more affordable to holders of other currencies. Brent crude prices rose 1.5%, or $0.73, to $50.25 per barrel on the ICE Futures Europe as well.
While oil prices made a recovery in early trading today, some analysts remain pessimistic about the future of oil prices. “Prices may be recovering slightly this morning, but given the 1.5 to 2.0 million barrels per day oversupply…the recovery will probably be short-lived,” a Commerzbank analyst told The Wall Street Journal.
Carlyle Group’s Rubenstein calls energy “one of the best investments in the world”
David Rubenstein, co-founder and co-CEO of The Carlyle Group, said he is still bullish on carbon-based energy investment. “The consumption of energy in something that we need to do to make the world go forward,” Rubenstein said during an interview with CNBC. “In time, (oi) prices will come back, in time demand will catch up with supply, and in time I do believe that carbon-based energy will turn out to be one of the best investments in the world.”
$10-$12 billion of dry powder for energy sector
The Carlyle Group manages $193 billion of assets, and currently has $10-$12 billion of “dry powder” to spend on the energy sector, according to CNBC.
While oil companies have taken a major hit from prolonged oil prices, Rubenstein said this will present an opportunity for investors. “I don’t want to predict any wide-scale declines in the value of all these (oil) companies, but I do think there will be opportunities to buy things at lower prices.”
Important disclosures: The information provided herein is believed to be reliable; however, EnerCom, Inc. makes no representation or warranty as to its completeness or accuracy. EnerCom’s conclusions are based upon information gathered from sources deemed to be reliable. This note is not intended as an offer or solicitation for the purchase or sale of any security or financial instrument of any company mentioned in this note. This note was prepared for general circulation and does not provide investment recommendations specific to individual investors. All readers of the note must make their own investment decisions based upon their specific investment objectives and financial situation utilizing their own financial advisors as they deem necessary. Investors should consider a company’s entire financial and operational structure in making any investment decisions. Past performance of any company discussed in this note should not be taken as an indication or guarantee of future results. EnerCom is a multi-disciplined management consulting services firm that regularly intends to seek business, or currently may be undertaking business, with companies covered on Oil & Gas 360®, and thereby seeks to receive compensation from these companies for its services. In addition, EnerCom, or its principals or employees, may have an economic interest in any of these companies. As a result, readers of EnerCom’s Oil & Gas 360® should be aware that the firm may have a conflict of interest that could affect the objectivity of this note. EnerCom, or its principals or employees, may have an economic interest in any of the companies covered in this report or on Oil & Gas 360®. As a result, readers of EnerCom’s reports or Oil & Gas 360® should be aware that the firm may have a conflict of interest that could affect the objectivity of this report.