The price of a barrel of oil would be closer to 10 dollars per barrel if the commodity wasn’t traded as an investment instrument, given the record-high levels of U.S. oil inventories, Peter Beutel, president of Cameron Hanover, said: “I honestly think that if there were no investors using oil as an asset that the [...] [...more]
Oil prices rose on Wednesday for the first time in three sessions to trade around $75 a barrel, bouncing with equities and supported by a weaker dollar as concerns over the European banking system eased and investors cautiously bought riskier assets. A weaker U.S. dollar tends to boost the price of dollar-priced commodities as it [...] [...more]
Crude Oil (WTI) – $74.69 // $0.02 // 0.03% Commentary: Crude oil reversed all of Tuesday’s losses on Wednesday, rising $0.58, or 0.78%. The commodity remains hamstrung. however, as inventories remain elevated and economic worries persist. Thursday brings the release of U.S. petroleum inventory data from the government; traders will be watching to see whether [...] [...more]
The above chart represents the seasonality for Crude Oil Futures Continuous Contract (CL) for the past 20 years. Date range: January 1, 1990 to December 31, 2009 Source: Equity Clock If you look at this seasonal chart you can see the bad seasonality from October to late December. If you add the large contango in [...] [...more]
Crude Oil (WTI) – $73.66 // $0.43 // 0.58% Commentary: Crude oil kicked off the new, holiday-shortened week on a down note, shedding $0.51, or 0.68%. Things were worse for the commodity in the early part of Tuesday’s trade, as crude was down almost $2 at one point, but news of an explosion at the [...] [...more]
The price of spot crude oil fell during yesterday’s trading following renewed concerns over the global economic recovery. This time around it was Europe that sparked fears of a weakened banking system and fiscal concerns in Ireland. Spot crude oil prices fell to $73.80, after opening the day at $74.04. Also affecting the price [...] [...more]
Oil futures are showing large contango spreads in the November and December contracts. November and December futures are trading 2.3% and 4.4% respectively, above front month prices. That is a carry trader paradise, especially if you are bearish on oil or on the economy in general. Small investors using the oil ETF`s also benefit from [...] [...more]
Market Overview: A classic EU sovereign debt/banking crisis fear inspired risk aversion day, slamming risk assets, especially the EUR. Sparked by a WSJ report that July bank stress tests understated PIIGS bond exposure. This is old new, but comes at a sensitive time as PIIGS seek to sell $80 bln in bonds and their bond [...] [...more]
Crude Oil (WTI) – $73.92 // $0.68 // 0.91% Commentary: Crude oil is currently down after falling on Friday despite a better-than-expected U.S. nonfarm payrolls report and rallying equity markets. Surging U.S. inventories continue to put pressure on the commodity, which typically rallies strongly on global growth optimism. It is worth repeating that inventories in [...] [...more]
The price of Crude Oil appears to have flattened out since last Friday’s Non-Farm Payroll data. Many market participants were pricing in an expectation for a surge in the USD, and therefore a plummeting price of oil, following Friday’s NFP data. Since disappointing data wasn’t delivered, and risk appetite remained steady, commodity prices also seem [...] [...more]
