Oil: What You Need to Know

Cramer: Oil's Headed to $110 (Video, Jul. 17)

Jim Cramer says consumption is down and natural gas will be the fuel of the future.

Plus, don't miss this oil-focused options strategy on TheStreet.com TV: Oil Selloff Pumps Up Valero (Jul. 15: The sharp drop in oil is boosting shares of Valero (VLO Quote). If this trend continues, options expert Steve Smith says, the best strategy is to buy call options on the refiner.).

From Crude Oil Climbs Back Above $140:

The International Energy Agency's monthly report on global oil markets, released to the public early Thursday [Jul. 10], upped the agency's forecast for total global oil consumption in 2008 by 1% to 87.7 million barrels.

The IEA is infamously known for making large changes to its energy predictions month-to-month. However, its outlook has remained steady the past several months as signs of demand being destroyed have trickled in from more and more global economies.

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From Pickens: Oil May Fall to $100 in Next 2 Years:

T. Boone Pickens, the legendary wildcatter turned takeover artist who now commands the hedge fund B.P. Capital Partners, said in a Tuesday [Jul. 8] television interview that oil prices will likely stay around $150 a barrel for the foreseeable future.

However, Pickens told CNBC that crude could fall back to $100 a barrel in the next two years as consumption patterns adjust to exorbitant prices.

Earlier in the day, Pickens hosted a meeting with reporters in which he introduced his version of a new energy plan aimed at reducing U.S. dependence on foreign oil. The plan proposes that gasoline-powered auto engines be converted to run on natural gas. Additionally, Pickens says the existing power-generation system that currently runs on natural gas and old coal technology should be replaced with a new system powered largely by wind and solar power.

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From Crude Futures Fall as Dollar Strengthens:

Crude futures are heading south again Tuesday [Jul. 8] at the New York Mercantile Exchange, pressured by strength in the U.S. dollar and the slight unwinding of tensions between Iran and Israel.

West Texas crude was recently down $3.17 at $138.20 a barrel, and Brent crude was falling $3.02 at $138.85 a barrel.

The dollar made a strong showing against other major world currencies overnight, gaining roughly 1% against the euro and the pound sterling and half a percent against the yen.

Crude prices tend to fall when the value of the U.S. dollar rises, because oil is traded in dollars in international markets.

Read the full article. Plus, don't miss these related stories: Crude Oil Futures Take a Tumble (Jul. 7) and Oil Jumps on Fears Iran Could Be Attacked (Jul. 1).

From Crude Prices Pass $145:

Crude oil futures soared past $145 a barrel for the first time ever Thursday [Jul. 3] before a bounce in the U.S. dollar cut into the gains.

Energy futures in the U.S. tend to stay firm ahead of holidays, as traders are usually unwilling to expose themselves for a long weekend to geopolitical strife, infrastructure breakdowns or other threats that can leave oil supplies unbalanced.

Read the full article. Plus, don't miss this related story: Rising Oil, GM Selloff Wallop Stocks (Jul. 2):

From Crude Oil Steady Ahead of Inventory Report:

Crude oil was trading laterally early in Wednesday's [Jul. 2] session at the New York Mercantile Exchange, with market participants apparently content on lying low until the Energy Information Administration releases this week's report on petroleum storage levels.

West Texas crude was down a hair at $140.87 a barrel, and Brent crude was adding 14 cents at $140.81.

Read the full article. Plus, don't miss these related stories: Crude Oil Drops After Inventory Report (Jun. 25), Stocks Limp Out of Second Quarter (Jun. 30), Crude Oil Strikes Another Intraday Record (Jun. 30) and Libya, OPEC Remarks Spark Crude Oil Rally (Jun. 26).