New "Profit Routes" Emerge in Oil - Reporting from Moscow

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December 18, 2009 New "Profit Routes" Emerge in Oil - Reporting from Moscow By Kent Moors, Ph.D., Contributing Writer, Money Morning MOSCOW - Sergei Kudryashov likes pizza, poker and American jazz. He's also deputy head of the Russian Ministry of Energy (Minenergo) and former VP at NK Rosneft OAO (LSE: ROSN), the No. 1 state-controlled oil producer. I've known Sergei for almost two decades now. We compare notes whenever I'm in Moscow. This time, I briefed his team on key developments in the international oil markets. And, as usual, I came away from the meetings with some incredibly valuable information - information the public simply can't get on its own. So let me share what I've just learned. It's a tremendous opportunity to profit from Russian oil - without investing a dime in the country itself. Indeed, as you'll see in a minute, there are several ways to make money right here at home. First, here's what's going on. Let me explain... Moors on... - Why Russia's Oil Fields Will Soon Be Crawling with Westerners - Profit From the Looming Spike in Crude Prices That the U.S. Oil Lobby Doesn't See Coming Now You Can Get Richer: Each time Congress goes on a billion-dollar spending spree... Each time hedge funds and Wall Street pile into gold to hedge their equity positions... Each time countries like China move out of the US dollar and buy (even more) massive quantities of gold... Each of these things has caused the yellow metal to soar recently, and it's not going to stop anytime soon. One of the easiest ways to take advantage of it is this one thing you can do with as little as $10 and 10 minutes - from your own computer. Discover it here. Sponsored content Copenhagen Talks Getting Back on Track, but China May Not Climb Aboard By Jason Simpkins, Managing Editor, Money Morning U.S. Secretary of State Hillary Clinton yesterday (Thursday) broke a major deadlock in negotiations at the United Nations Climate Change Conference (COP15) in Copenhagen, but China's aversion to transparency could keep a deal from being brokered. For months developing countries have blamed the lack of a cohesive global response to climate change on the unwillingness of the world's richer nations to help finance green projects. However, that all changed yesterday when Clinton said the United States would be willing to support a $100 billion fund to help emerging countries finance green energy initiatives. Continue... Investment News Briefs Money Morning Staff Reports With our investment news briefs, Money Morning provides investors with a quick overview of the most important investing news stories from all around the world. Senate Approves Bernanke Nomination; Commodities, Markets Fall as Dollar Gains; Citi Shares Fall After Lower-Than-Expected Price for Stock Sale; Weekly Jobless Claims Rise; Whitney Reduces EPS Estimates for Goldman, Morgan Stanley; Report: AIG Asian Subsidiary to Have Hong Kong IPO; RIM Beats Estimates on BlackBerry Shipments; Palm Q2 EPS Misses Wall Street Expectations As expected, the Senate Banking Committee yesterday (Thursday) approved U.S. President Barack Obama's nomination of Federal Reserve Chairman Ben Bernanke to a second four-year term. While the debate prior to the vote was contentious, 16 Senators voted in favor of Bernanke's second term while seven were against it. Bernanke was named Time magazine's Person of the Year 2009 on Wednesday. The U.S. dollar rose to its highest level in three months against the euro as investors unloaded risky assets yesterday (Thursday). The dollar was trading at 1.4345 per euro yesterday afternoon, driving down stocks and commodities. Gold futures for February delivery closed at $1,134 per ounce on the New York Mercantile Exchange (NYMEX). The Dow Jones Industrial Average was down 1.27% to close at 10,308.26, the Standard & Poor's 500 Index fell 1.18% to settle at 1,096.07 and the Nasdaq Composite Index dropped 1.22% to close at 2,180.05. Investors dumped shares of Citigroup Inc. (NYSE: C) yesterday (Thursday) after the bank said it would sell 5.4 billion shares of stock at a price of $3.15 per share - 9% less than what shares were trading before the announcement - to help pay off the $20 billion in bailout money it received from the U.S. government. This prompted the Treasury Department to balk at the deal, and step away from selling a portion of its 34% stake in Citi, The Associated Press reported. Citi stock closed at $3.20, down 7.25%. Initial jobless claims in the United States rose by 7,000 to 480,000 for the week ended Dec. 12, the Labor Department said yesterday (Thursday). However, the key four-week moving average fell by 5,250 to 467,500, which is significant, because it irons out week-to-week volatility in the data. Meredith Whitney, an analyst who runs an advisory group that bears her name, reduced earnings estimates for Goldman Sachs Group Inc. (NYSE: GS) to $6 a share in the fourth quarter, $19.65 a share in 2010 and $20.60 a share in 2011. She previously forecast profit of $6.38 a share in the fourth quarter, $21.73 in 2010 and $24.04 a share in 2011. She also expects Morgan Stanley (NYSE: MS) to earn $2.60 a share next year and $2.75 a share in 2011, down from $2.63 a share next year and $3.28 a share in 2011. American International Group Inc. (NYSE: AIG) is planning to raise billions of dollars next year by listing its Asian life insurance unit on the Hong Kong Stock Exchange, people familiar with the plan told The New York Times. The planned listing, which could raise as much as $20 billion, is expected to help AIG repay some of its huge debt to the U.S. government, which has an 80% stake in the company. Strong shipments of its popular BlackBerry smartphone helped Canada's Research in Motion Ltd. (Nasdaq: RIMM) grow its revenue by 41% in its third fiscal quarter ended Nov. 30. RIM reported a net income of $628.4 million, or $1.10 per share, on sales of $3.92 billion for the quarter. That compares to a profit of $386.3 million, or 69 cents per share on revenue of $3.53 billion in the same quarter last year. The company shipped 10.1 million smartphones in the quarter, beating analyst estimates of 9.5 million, MarketWatch.com reported. Palm Inc. (Nasdaq: PALM) posted a wider-than-expected loss of $81.9 million, or 54 cents per share, on sales of $78.1 million for its second fiscal quarter ended Nov. 30. That compares to a net loss of $506.2 million, or $4.64 per share, on revenue of $191.6 million a year ago. Excluding items, Palm posted a loss of 37 cents a share, which fell below average analyst forecast for a loss of 32 cents, Reuters reports. The maker of the Pre and Pixi smartphones said it shipped 783,000 devices in the quarter, up 41% from a year ago. Investment News Briefs Archives Heads you win, Tails you win... The richest guarantee we've ever offered you: You see 225% gains or we pay you $995. You're guaranteed to win either way. It's all explained in this Special Situations report. But the minute conditions change, we'll be pulling this report. You'll see why here... Video Feature The one silver mine that isn't "rubbish" Top Stories December 17, 2009 Is Incoming Bank of America CEO Moynihan "More of the Same?" December 16, 2009 FTC Sues Intel in Antitrust Action as EU Settles With Microsoft December 16, 2009 Tax Break Negates U.S. Profit from Citi's TARP Repayment Publisher's Series Is China Secretly Targeting the Dollar? Key Weekly Drivers Date Release 12/14 Nothing scheduled 12/15 Producer Price Index (11/09) Empire State Manufacturing Index (11/09) Industrial Production (11/09) 12/16 Federal Reserve Open Market Committee announcement Consumer price index (11/09) Housing Starts (11/09) 12/17 Conference Board's index of leading indicators (11/09) Philadelphia Fed's Business Outlook Survey (11/09) Jobless claims (week ending 12/11) 12/27 Equity, commodity and futures options expire Investor Reports The Two Secrets to Successful Market Timing Eight Ways to Profit as the U.S. Housing Recovery Gathers Steam Five Ways to Ride the Commodities Bull Three Ways to Profit From Rising Oil Prices The Publisher's Series 7 Reasons Gold Will Surpass $2500 - Free Report Featured Columns from MoneyMorning.com Buy, Sell, or Hold December 14, 2009 Buy, Sell or Hold: Government's HeavyHanded Plans Spawn Profits With These Three Top Stocks for 2010 Hot Stocks December 7, 2009 Is Markel Corp. a Berkshire Hathaway in the Making? John Markman Decemberl 16, 2009 How Simple Investing Strategies Can Generate Maximum Profits Outlook 2010 Decemberl 15, 2009 How Washington Will Mess with Your Money in 2010 Of Special Note: Keith Fitz-Gerald on: Gold: You may not be making as much as you think... Martin Hutchinson on: Can U.S. bank stocks double again in 2010? Horacio Marquez on: The new technology that will replace 148 billion barrels of oil Shah Gilani on: How the government is creating a second subprime mortgage bubble

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