Backwardation Report: Cotton, Crude and Gasoline Face Falling Prices
Backwardation is the process where near-month futures are more expensive than those expiring later in time, which creates a downward sloping curve for prices over time. It is a natural occurrence in the commodity world, but it’s still a phenomenon that traders need to be aware of. Often, a falling futures curve could mean that the market expects the commodity to take a drop in value or that it is currently overpriced [for more commodity futures news and analysis subscribe to our free newsletter].
The Best And Worst Energy ETFs Of 2012
The energy sector has been anything but stable this year, as commodities as a whole suffered at the hands of volatile trading. Crude oil prices surged all across the board while popular natural gas struggled to maintain a direction. With 2012 coming to a close, we take a look back on the year and outline the best and worst performing energy ETFs. Note that this list excludes leveraged and inverse products [for more energy ETF news and analysis subscribe to our free newsletter].
10 Ways to Invest in Fracking
Hydraulic fracturing, or fracking, has become tremendously popular in the United States and Canada over the past couple of years. By pumping pressurized fluid into a wellbore the process enables companies to extract previously inaccessible hydrocarbons. The result has been a natural gas bonanza in many parts of the U.S., particularly in shale regions like the Barnett Shale Basin in Texas and the Bakken Formation in North Dakota, as well as in parts of Canada [for more fracking news and analysis subscribe to our free newsletter].
Breaking Down the Cost of a Gallon of Gas
The price of a gallon of gasoline ranged from $3.27 along the Gulf Coast, to $3.90 along the West Coast in November 2012; ever wonder how much of that goes to the government and how much goes to exploration and refining companies? Then there are the gas stations and oil traders looking to make a profit as well. Let’s look at the breakdown of who makes what, and also why prices vary across the country – sometimes drastically [for more gasoline news and analysis subscribe to our free newsletter].
Gasoline Futures Catch Fire
The past few days have seen a number of factors combine to push gasoline prices higher. The most notable price drive came from hurricane Sandy, which wreaked havoc on the east coast and caused what some are estimating tens of billions of dollars in damages. With pipelines and stations around the country knocked out by the “superstorm”, gasoline futures have been on a 10% tear in the trailing 5 days, with more than 5% coming today [for more gasoline news and analysis subscribe to our free newsletter].
All About The Gasoline ETF (UGA)
Without gasoline, many of us could not go on with our daily routines. And because of our high level of dependence, gasoline has become one of the most important commodities in the world. Gasoline, more specifically RBOB Gasoline, is a petroleum-derived liquid mixture and its usage in the transportation industry in the U.S. accounts for over 40% of global gasoline demand. The price of gasoline can be affected by a multitude of factors, including the health of the global economy, geopolitical tensions, and even changing tax policies across the globe [for more gasoline news and analysis subscribe to our free newsletter].
