Those who seek additional confirmation that we’re near the bottom in the crude oil cycle may feel sorely tested with yesterday’s U.S. weekly inventory data from the Energy Information Administration, which showed yet another massive buildup in stockpiles and sent prices reeling on the day (though they remain well above the March lows). The nearly 11 million barrel increase pushed the total available domestic supply (excluding the Strategic Petroleum Reserve) to 482.4 million barrels, the highest amount available for this time of year in 85 years. Read more about The Big Deal About the Big Deal 04-09-15
We’re now seeing evidence that the long-awaited drop in U.S. crude oil production is underway. The current rivulet should soon become a big waterfall that clears the way for strong rebound in energy prices. This issue we return to Denbury Resources (DNR), a unique opportunity in the energy space that is a relatively low-risk choice to play the recovery.
Also in this issue, we reexamine the latest developments in the world’s rush to adopt solar power. The story just keeps getting ever more bullish for silver, a metal that vital to solar’s success.
Note that our offices are closed tomorrow in observance of the Good Friday holiday. Read more about Solar Flair
The Fed’s statement has also checked the powerful rally in the U.S. dollar. Many market participants believe this is just a very minor pause for the buck. But given the intensity of the rally in the past several months, we’re likely to experience history a decent-sized pullback, which will boost commodities, particularly gold.
Like the dollar, stocks are overbought and in need of a breather. We highlight a pair of income-generating, alternative energy-focused stocks to consider for high total returns in this market with relatively low risk.