All Eyes on Major OPEC Meeting
Crude oil has been under the microscope for the latter half of 2014, as prices have all but cratered. Starting in late June, crude prices dropped by more than 25% as bearish momentum took over. With oil prices now sitting around $75/barrel many are looking to OPEC to install a solution to keep prices from dipping even further. All eyes will be on the organization as they meet on Thursday (11/27) to discuss possible solutions [for more commodity news and analysis subscribe to our free newsletter].
Crude Oil Takes a Tumble
Crude oil prices enjoyed a strong first half of 2014, as energy had placed itself among the better performing sectors for the year. But the fossil fuel’s bullish run came to a head in June when a number of factors combined to sink its price. Along with barrel prices dipping, major energy companies are taking a hit and even Wall Street as a whole has begun to feel the pinch of the energy sector [for more commodity news and analysis subscribe to our free newsletter].
Fossil Fuels in Focus as Hurricane Season Begins
U.S. hurricane season kicked off over the weekend, as the time period between June 1st and November 30th of each year brings special attention to these storms. Aside from the devastation they can bring to the areas they hit, these storms can also have a big impact on the commodity world (albeit short-term). Few commodities feel the brunt of the blow more than fossil fuels [for more commodity news and analysis subscribe to our free newsletter].
March Backwardation Report: Energy Futures Downward Sloping
Backwardation is the process by which futures contracts decrease in price as they move further out in maturity. This can often be due to the expectation of future prices or trends in a certain hard asset, but it can also occur from supply boosts, among other things. Though it is not a phenomenon that should worry investors, keeping an eye on the futures curve can help you make more informed investment decisions [for more commodity news and analysis subscribe to our free newsletter].
Why the WTI Vs. Brent Crude Spread Is Shrinking
The spread between West Texas Intermediate (WTI) and Brent Crude oil has long been under the microscope for energy traders across the world. The past few years have seen this spread heavily favor Brent, as it has been trading at a premium to its western cousin for quite some time. But as 2013 unfolds, the spread has been steadily narrowing, much to the surprise of a number of analysts [for more crude oil news and analysis subscribe to our free newsletter].
Crude Oil Hovers at 12-Month High
After a disappointing sell-off in April, crude oil has finally regained some positive momentum, although not necessarily for the most positive reasons. The fossil fuel is currently sitting at a 12-month high, as it finally broke through the triple-digit barrier for the first time since September of 2012. While the riots in Egypt have certainly played a role in the rapid rise in the price of crude, the U.S. supply levels are also playing a key role behind the scenes [for more crude oil news and analysis subscribe to our free newsletter].
3 Commodities Looking To Turn It Around in 2013
The first half of 2013 is officially in the books as commodity investors take a look back on a relatively eventful two quarters. While equities surged to highs never seen before, a number of commodities struggled, as analysts and investors fear that the super-cycle may be nearing its end. But while a number of high profile commodities, like gold, had a tough time this year, there were others that persisted. Below, we outline three commodities who turned in positive performances through the first six months of the year [for more commodity news and analysis subscribe to our free newsletter].
How Crude Oil Traders Manipulate The Market
Market manipulation, especially in the commodity space, is nothing new. Hard assets like gold and silver are almost always under scrutiny for fear that large institutions are getting away with fixing the market; JP Morgan just recently escaped such charges concerning silver markets. The latest scandal has hit the European Union, as one trader has stepped forward, detailing how he (and many others) have been able to successfully manipulate Platts oil prices over the years [for more crude oil news and analysis subscribe to our free newsletter].
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].
