Tag: Commodities

Oil prices fell as much as 4% on Thursday, breaking through a key support level, as rising U.S. crude stockpiles helped offset concerns about a supply crunch.Crude futures declined despite a wave of geopolitical concerns, including political turmoil in Venezuela and the launch of new American measures aimed at driving Iran’s crude exports to zero.The drop was partly due to the overhang from Wednesday’s weekly report on U.S. crude stockpiles, which showed inventories surging by 9.9 million barrels. The data also showed U.S. oil production ticking up to a record 12.3 million barrels per day.U.S. crude stockpiles have risen in

China is considering a U.S. request to shift some tariffs on key agricultural goods to other products so the Trump administration can sell any eventual trade deal as a win for farmers ahead of the 2020 election, people familiar with the situation said.

Another person said China would consider shifting the tariffs to make it easier to meet a proposal to buy an additional $30 billion a year more of U.S. agricultural goods on top of pre-trade war levels as part of a final deal. Last July, China had levied punitive tariffs on American goods including soy, corn, wheat, cotton, rice,

The spike in price came out of nowhere and in the process several hedge funds and pension funds suffered major losses. One hedge fund making major headlines was James Cordier, of Optionsellers.com His hedge fund blew up and he lost all of his client’s money selling naked calls on natural gas futures when price shot up nearly 20% in a single afternoon.

Natural Gas Analysis Report 11-29-18…Price Pauses At The Monthly Demand…Now What??

I honestly thought, price would move higher before it moved lower in the near future due to price momentum, natural gas lower than expected inventories and winter is just

Yesterday China officials reported that their economy grew slightly faster than expected in the three months to March.  The economy expanded at 6.4% in the first quarter from a year earlier vs. the forecast of 6.3%.  In additional, factory output jumped 8.5% in March.

China is taking a “by any means necessary” approach to boost its slowing economy, but don’t call this a comeback yet. I mean it was only one quarter, for that matter the whole world has been on fire to start the year.  Nevertheless, the news was enough to send the copper prices to a 10 month high

“We don’t think you’re going to get back to those $80 levels again, so you’ve got some modest upside here,” Goldman Sachs’ head of commodities research, Jeff Currie, told CNBC this week. “While the macro risk-on environment and the threat of disruptions may drive spot prices even higher, we still expect that prices will decline gradually from this summer as shale and OPEC production increases,” they concluded. “With large spare capacity in OPEC and the Permian basin and a wave of long-cycle projects still expected to come online in 2020, we maintain our $60/bbl forecast for next year.” Goldman

The current price of an average gallon of regular gas nationwide is up 35 cents in the past six weeks.  According to gas price research company GasBuddy, the average price of a gallon of regular gas has reached $2.58, which is the highest price since November.

Gasoline is a derivative of oil, so as oil prices rise, which is up over 30% YTD, so does gasoline, which is up almost 50% YTD.  However, gasoline prices are also seasonal.  In late February routine refinery maintenance season begins. 

Then in mid-April refiners changeover from producing “winter blends” of gasolines “summer blends.”  Thus, there

About three weeks ago, I wrote about gold, specifically, the SPDR Gold Trust, GLD, where I referenced one of last year’s best-performing hedge funds was saying to buy gold as the “trade of the century.”

Gold…The “Trade Of The Century”

But I cautioned to wait because the chart was suggesting to wait until price broke the monthly supply first…and with good reasons based on an article I came across today.

A week ago investors were yanking money out of gold exchange-traded funds as hints of improving global growth and surging stocks lure them into riskier assets. The largest fund in the space, the

Two month ago, I talked about Palladium and how it was at all-time highs.  Because price was already at its avg. measured move, I decided to use fibonacci extensions to identify a target price and selected the 138% extension, which gave a $1465 target.  

Palladium Is On A Roll

Palladium futures suffered Wednesday from their sharpest one-day dollar decline in more than 19 years, losing nearly $100 an ounce for the session to mark a significant retreat from a recent string of record settlements tied to an expected surge in auto-industry demand.“The tighter emissions standards in Europe and elsewhere has led to

Gold…The “Trade Of The Century”

One of last year’s best-performing hedge funds says the “trade of the century” is to buy gold and sell stocks as risk assets are due for another meltdown.The consensus is pointing to a recession in 2020 or 2021, Tavi Costa, a global macro analyst at Crescat, said by phone. “We think it’s a lot closer than that and we have a number of macro timing indicators that we look at.”Going long gold in yuan terms and shorting global equities currently explains three-quarters of the hedge fund’s strategy.“We’re not perma-bears by any means,” Costa said. “This is